Medicare 2023: Biden Proposes Tax Increase on Rich To Save Program

U.S. President Biden proposed increasing the taxes of the richest to save the Medicare 2023 program. Biden believes that this effort will prolong the resources of the program by 25 years.

On March 9, the U.S. President Joe Biden was expected to introduce his proposal of increasing the taxes on Americans who earn more than $400,000 as part of his 2024 budget. This move is reportedly an effort to prolong the resources and funding of the Medicare 2023 program by 25 years.

An article on the Arkansas Democrat Gazette states that Biden’s proposal for the Medicare 2023 program would increase the net investment income tax from 3.8% to 5%. The incomes that would be affected are those that are more than $400,000 which includes regular income, pass-through business income, and capital gains. To date, the net investment income tax applies to incomes more than $200,000 for individual filers and $250,000 for joint filers.

READ ALSO: Medicare Expected To Save $280 Billion With Cheaper Prescription Drugs Due To IRA

Future of the Medicare 2023

According to Dore, sometime in July to September, the U.S. Department of the Treasury will drain its resources to prevent a debt default if the Congress does not increase the debt limit. This means that Biden’s proposal is heavily debated as the Congress faces an impending debt crisis.

Apart from legislators debating whether to increase the debt limit, there are also concerns about the Medicare 2023 cuts. This is despite Biden’s proposal the protect to the program during his 2023 State of the Union address last January. Nonetheless, House Speaker Kevin McCarthy stated that the Medicare 2023 program must be completely not considered during debt limit negotiations.

READ ALSO: Good News For Medicare Recipients: Premiums Down By Up To 3% In 2023