Home Life Insurance Debate: Would Biden’s Proposed Payroll Tax Hike Defend Medicare’s Solvency?

Debate: Would Biden’s Proposed Payroll Tax Hike Defend Medicare’s Solvency?

Debate: Would Biden’s Proposed Payroll Tax Hike Defend Medicare’s Solvency?

Byrnes: Larger revenue taxpayers don’t obtain any further Medicare advantages above and past what each different American receives. In actual fact, these taxpayers are prone to pay far more into the system as a result of they typically buy “Medigap” plans to cowl any extra bills not lined by conventional Medicare — and, by definition, they’re topic to the present Medicare charge on a better quantity of revenue than lower-income taxpayers. By these requirements, high-income Individuals are already paying extra for a similar advantages.

Bloink: By requiring the best revenue taxpayers to pay a further proportion on any revenue above $400,000, we are able to each shield the Medicare program’s solvency and be sure that the wealthiest Individuals are paying their fair proportion for advantages they too obtain. It’s necessary to do not forget that this tax would apply to each earned and unearned revenue — that means it might additionally apply to dividends and different passive kinds of revenue which can be typically topic to decrease tax charges.

Byrnes: Elevating the tax charge for Medicare payroll taxes can be extraordinarily inequitable given the character of this so-called entitlement program — given that each American is eligible to obtain solely the identical fundamental Medicare profit no matter their tax charge. One more tax hike earmarked towards the Medicare program isn’t the best way to unravel this system’s solvency points.

Bloink: The underside line is that rich Individuals have the flexibility to skirt taxes just like the Medicare payroll tax by means of using many various tax loopholes. To this point, we’ve been unable to remove these loopholes to make sure all Individuals are paying their fair proportion. Imposing this Medicare surtax on each sort of revenue above $400,000 would serve to be sure that Individuals are unable to keep away from paying into this program that’s essential to all Individuals.

Byrnes: Now isn’t the time to be rising taxes. Our financial local weather is extraordinarily fragile proper now. Companies are nervous about market situations, inflation and the potential for coming into a protracted recession. We ought to be centered on reining within the prices of well being care and decreasing the impression of inflation for all Individuals. These tax hikes are unrealistic and can by no means truly turn into legislation.

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