Calay News
President Joe Biden is proposing a plan to increase the Medicare tax rate on high earners in order to help cover the costs of the program. Under the plan, the Medicare tax rate would increase from 3.8% to 5% on income exceeding $400,000 per year, including salaries and capital gains.
The move would likely generate more than $117 billion in tax revenues over the next decade, according to previous estimates by the Tax Policy Center. However, the White House has not provided specific cost-saving estimates for the proposal.
Biden’s proposal comes as part of his larger plan to improve healthcare for Americans, which includes reducing prescription drug costs and expanding Medicare benefits. The president has also proposed increasing funding for mental health and substance abuse treatment, as well as investing in research and development for new cures and treatments.
The proposed tax increase has been met with mixed reactions. Supporters argue that it will help ensure that Medicare remains financially stable and can continue to provide healthcare to older Americans. However, opponents argue that the tax increase will be detrimental to the economy and will discourage high earners from investing and creating jobs.
The proposal is part of Biden’s overall plan to invest in America’s infrastructure and social safety net. The President has repeatedly emphasized the need to address income inequality and provide greater support for working families.
The proposal will need to be approved by Congress before it can be implemented. It remains to be seen whether lawmakers will support the tax increase, but the President has made it clear that he believes it is necessary in order to ensure that Medicare remains viable and accessible for all Americans.
