President Joe Biden claims his plan to raise taxes on the wealthy will have save Medicare for going broke and he charges that Republicans want to ‘destory’ the program by slashing its benefits.
In an op-ed published Tuesday in the New York Times, Biden argues that ‘the budget I am releasing this week will make the Medicare trust fund solvent beyond 2050 without cutting a penny in benefits.’
He will release his full budget on Thursday during a trip to Philadelphia.
But parts of his plans are being released ahead of time, including his proposal for the entitlement program.
President Biden plans to raise taxes on wealthy to pay for Medicare
Biden proposes to increase taxes on those making more than $400,000 to 5 percent from 3.8 percent and to expand Medicare’s ability to negotiate lower costs for prescription drugs, according to details released by the White House.
‘This modest increase in Medicare contributions from those with the highest incomes will help keep the Medicare program strong for decades to come,’ Biden writes
His plan will face difficulties in Congress where Republicans control the House and Democrats have a slim majority in the Senate.
Republicans have yet to release their own budget plan.
House Speaker Kevin McCarthy is almost certain to oppose Biden’s. And congressional Republicans this week will highlight the tax increases that Biden proposes in his budget proposal, betting that their arguments will sway voters at a time when inflation continues to hit consumers’ pockets.
But Biden’s plan will appeal to older Americans, who have expressed concern about the stability of the program.
As he prepares his re-election campaign, Biden has been drawing contrasts with Republicans in Congress, some of whom are seeking deep cuts to federal programs.
It’s an appeal to older voters, who are usually reliable at turning out at the polls, ahead of the 2024 presidential race.
Biden, in his op-ed also went on the attack against Republicans, claiming they want to ‘destroy’ Medicare by slashing its benefits.
‘My Republican friends claim that the only way to be serious about preserving Medicare is to cut benefits, including by making it a voucher program worth less and less every year. Some have threatened our economy unless I agree to benefit cuts,’ he wrote.
‘Only in Washington can people claim that they are saving something by destroying it.’
Forecasters warn Medicare will start to face problems in five years.
The Center on Budget and Policy Priorities found that, after 2028, the entitlement program ‘Part A,’ which reimburses hospital care, will find its funds slowly decreasing – unable to meet demand. After 2028, Medicare would be able to pay only about 90 percent of hospital coverage and that percentage would decrease as the years go on.
About 60 million seniors depend on Medicare for their health insurance.
House Republicans have yet to release their budget plan but Speaker Kevin McCarthy is sure to oppose Biden’s plan
Currently for Medicare, most employers and workers each pay a 1.45% payroll tax for a total of 2.9%. Self-employed people pay both sides of the tax.
Individuals making more than $200,000 and married couples making over $250,000 pay an additional 0.9% on money above those thresholds for a total of 3.8%.
House Budget Committee Chairman Jodey Arrington, R-Texas, who is drafting his party’s fiscal plan, has said Biden’s plans will see inflation soar.
‘We’re going to see a budget that continues to increase taxes, and continues to spend taxpayer moneys, and continues to have this 15th consecutive month of inflation persist as a result of that,’ Arrington said.
Biden laid the groundwork for his upcoming budget in his State of the Union address last month and in other recent speeches. He’s pledged to trim deficits by a combined $2 trillion over 10 years, strengthen Social Security and Medicare and limit tax increases to people earning more than $400,000.
His plan is in some ways far more ambitious than what he proposed in 2021, when his budget would have reduced the debt by $1 trillion over 10 years relative to projections.
