Revolutionary Proposal: President Biden Unveils New Taxes on the Rich to Save Medicare
- last year
Revolutionary Proposal: President Biden Unveils New Taxes on the Rich to Save Medicare
President Joe Biden has proposed new taxes on the rich to fund Medicare, as part of his effort to extend the insurance program's solvency by 25 years and provide stability to millions of older adults. The president's plan would increase the Medicare tax rate from 3.8% to 5% on income exceeding $400,000 per year, including salaries and capital gains. The White House estimates that this move would increase tax revenues by over $117 billion in 10 years. However, Senate Minority Leader Mitch McConnell dismissed the plan, and the proposal is expected to face opposition from Republicans in Congress. The proposed Medicare changes are part of a broader budget proposal that Biden plans to release soon. The conflict between Biden's plan and the GOP's view that economic growth comes from tax cuts like those pushed through by former President Donald Trump in 2017, is part of a broader showdown. Biden and Congress need to reach a deal to raise the government's borrowing authority this summer, or else the government could default and plunge the U.S. into a debilitating recession. The proposed tax hikes are also a direct challenge to the GOP's position on taxes and are expected to face opposition.
President Joe Biden has proposed new taxes on the rich to fund Medicare, as part of his effort to extend the insurance program's solvency by 25 years and provide stability to millions of older adults. The president's plan would increase the Medicare tax rate from 3.8% to 5% on income exceeding $400,000 per year, including salaries and capital gains. The White House estimates that this move would increase tax revenues by over $117 billion in 10 years. However, Senate Minority Leader Mitch McConnell dismissed the plan, and the proposal is expected to face opposition from Republicans in Congress. The proposed Medicare changes are part of a broader budget proposal that Biden plans to release soon. The conflict between Biden's plan and the GOP's view that economic growth comes from tax cuts like those pushed through by former President Donald Trump in 2017, is part of a broader showdown. Biden and Congress need to reach a deal to raise the government's borrowing authority this summer, or else the government could default and plunge the U.S. into a debilitating recession. The proposed tax hikes are also a direct challenge to the GOP's position on taxes and are expected to face opposition.