Biden Budget Will Propose Tax Increase to Bolster Medicare

In order to keep Medicare going for longer, President Joe Biden wants to raise taxes on people making more than $400,000 a year, the White House said Tuesday, 7 March 2023, in a preview of his budget plan.

As per the report, The White House says the tax rate on earned and unearned income for the wealthiest Americans would go from 3.8% to 5%. Biden’s budget plan will be made public on Thursday.

Biden will also suggest changes to benefits, such as limiting the amount a Medicare recipient must pay out of pocket for certain generic drugs, like those used to treat long-term conditions like high blood pressure and high cholesterol, to $2. And he wants to make it easier for Medicare to get lower prices on prescription drugs.

Biden Budget Will Propose Tax Increase to Bolster Medicare
Biden Budget Will Propose Tax Increase to Bolster Medicare

The administration says the Medicare tax hike and other proposed changes would keep the hospital insurance fund solvent for at least 20 years.

Medicare trustees say that the fund, mostly paid for by payroll taxes, will not have enough money to cover all expected costs in 2028.

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In the past few months, Biden has been very hard on Republicans about Medicare and Social Security, which are very popular but take up a lot of money from the federal budget and are getting bigger.

“Let’s ask the wealthiest to pay just a little bit more of their fair share, to strengthen Medicare for everyone over the long term,” Biden wrote in an opinion piece published in The New York Times Tuesday.

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