Connect with us

Hi, what are you looking for?

Finance

Tax the Rich Medicare Plan – Biden Proposal Challenges GOP’s Stance to Reduce Federal Budget

President Joe Biden plans to revive the tax the rich to help fund Medicare.
President Joe Biden plans to revive the tax the rich to help fund Medicare. (Photo: Greg Nash/Pool/Getty Images)

President Joe Biden revealed his plan of Tax the Rich Medicare Plan on Tuesday – provoking Republicans to renege on their promise during the State of the Union address not to cut the funding for the program.

Biden plans to extend Medicare into the 2050s and increase the Medicare tax rate from 3.8% to 5% for people earning over $400,000 annually. As part of the Inflation Reduction Act, he would also let Medicare negotiate prices for a broader range of prescription drugs, which would likely reduce the federal deficit by $250 billion. He said the profit would be invested back into the Medicare trust fund, extending the program by 25 years.

President Joe Bidens revealed his plan on Tuesday to revive the tax the rich to save Medicare. The remarks dare Republicans to renege on their promise not to cut the funding for the program.

President Joe Bidens revealed his plan on Tuesday to revive the tax the rich to save Medicare. The remarks dare Republicans to renege on their promise not to cut the funding for the program. (Photo: DW.com)

Also Read: What is Marginal Tax Rate? Biden Eyes Taxing Rich 

Biden said if the MAGA Republicans blocked the plan, seniors would pay higher out-of-pocket costs on prescription insulin and drugs, increasing the deficit, and Medicare would be weaker. He warned that Big Pharma would be the only winner under their plan.

The president earned a big win during his State of the Union when he made Republicans agree not to cut Medicare or Social Security funding.

According to The New Republic, GOP lawmakers are threatening to hold the debt ceiling hostage until the federal budget is reduced, which would affect Social Security and Medicare. Republicans have tried to deny and make it seem as if they never plan to cut the entitlement programs, despite widespread evidence to the contrary.

Find Out: Debt-Ceiling and Its Potential Effects on Social Security and Medicare 

More: Debt Ceiling Pushes Social Security Payments On The Line; What Happens Next?

Biden’s announcement is a cheeky dare to the GOP; however, if the budget battle drags out for too long, more serious consequences would trouble the United States. It should be noted that the government hit the debt-ceiling in January. Treasury Secretary Janet Yellen has warned that if the cap is not increased or there is no solid solution, the U.S. will likely default on its debt by summer.

If that happens, the government could not pay Social Security or Medicare or fund military salaries. Once the U.S. defaults on its debt, there will be an unimaginable impact on the economy domestically and abroad.

Read More: 

 

Copyright © 2022 Pro Claimers. Theme by MVP Themes, powered by The Santa Clarita Valley.