Joe Biden’s Proposal on Medicare Tax Increase
President Joe Biden has proposed a Medicare tax increase to secure the program’s future. The plan raises taxes on the wealthy and is designed to fund Medicare for the next 25 years. Biden’s proposal will ask Congress to increase the Medicare tax rate from 3.8% to 5% for individuals earning more than $400,000 a year. This tax increase is expected to generate additional revenue to keep the program strong for the next decades.
The president’s plan includes closing a financial loophole that has allowed the wealthiest Americans to avoid paying taxes by claiming parts of their income as neither earned nor gained from the investment. The proposal also seeks to expand the number of drugs available through Medicare and strengthen the government’s ability to negotiate lower prescription costs. This expansion is expected to save Americans billions of dollars in out-of-pocket drug costs.
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According to UPI, Biden’s proposal also seeks to lower the cost of behavioral and mental health services and includes a $2 monthly cap on certain generic drugs used to treat chronic conditions. The savings from these budget reforms would pour an additional $200 billion into Medicare’s Hospital Insurance Trust Fund over the next decade.
The president has accused the GOP of wanting to put critical healthcare subsidies “on the chopping block” to balance the budget. He has made it a key campaign issue following a rousing State of the Union address in which he accused Republicans of wanting to “sunset” Social Security and Medicare.
Overall, Biden’s proposal to increase Medicare tax rates for the wealthy aimed at assuring the program’s future for the next 25 years. This tax increase is expected to generate additional revenue that will keep the program strong for decades to come. The president’s plan seeks to expand the number of drugs available through Medicare and strengthen the government’s ability to negotiate lower prescription costs and lower costs for behavioral and mental health services. It also includes a $2 monthly cap on certain generic drugs used to treat chronic conditions. The savings from these budget reforms would pour an additional $200 billion into Medicare’s Hospital Insurance Trust Fund over the next decade.
READ ALSO: U.S. President Joe Biden to Raise Taxes to Support Medicare
