President Joe Biden is proposing a plan to raise the Medicare tax on high-income Americans and push for additional drug price negotiations to fund the program through 2050.
The plan would raise the tax from 3.8 percent to 5 for those earning above $400,000 per year. The proposal is a bid to get Republicans on board with a 2024 budget bill.
"Millions of Americans have been working their whole lives, paying into Medicare with every working day, and want to know that they can count on Medicare to be there for them when they turn 65," the White House said in a statement. "The President’s Budget extends the life of the Medicare Trust Fund by at least 25 years. It achieves these gains with no benefit cuts—indeed, while lowering costs for Medicare beneficiaries.
The proposal also calls for closing loopholes in existing Medicare taxes and leveraging the Inflation Reduction Act (IRA) authority to negotiate prices for high-cost drugs.
The president is set to release his full budget plan on Thursday. Medicare and Social Security account one-third of federal spending, according to the Congressional Budget Office. Concerns about their future solvency are a perennial concern in Congress.
Hard-fought to the end, the debt ceiling and budget cuts package is heading toward a crucial U.S. House vote as President Joe Biden and Speaker Kevin McCarthy assemble a coalition of centrist Democrats and Republicans to push it to passage over fierce blowback from conservatives and some progressive dissent.
The Republican speaker urged GOP skeptics Tuesday to look at “the victories” in the package he negotiated with President Joe Biden.
Former first lady Rosalynn Carter has dementia, her family announced Tuesday.
Surrounded by dozens of cheering people in green clothes, Minnesota Democratic Gov. Tim Walz signed a bill Tuesday to legalize recreational marijuana for people over the age of 21, making Minnesota the 23rd state to legalize the substance for adults.
Texas would expand what is considered an illegal public performance of sexual conduct, under a bill approved late Sunday by state lawmakers that drag artists fear will be used to criminalize their shows.
Russia's Interior Ministry on Monday issued an arrest warrant for U.S. Sen. Lindsey Graham following his comments related to the fighting in Ukraine.
A rare drone attack jolted Moscow early Tuesday, causing only light damage but forcing evacuations as residential buildings were struck in the Russian capital for the first time in the war against Ukraine.
President Joe Biden said the U.S. will consider sanctioning those responsible for the "tragic violation" of human rights.
Some House Democrats will have to vote for McCarthy's bill if enough conservative Republicans keep their word to oppose any compromise.
A South Carolina judge temporarily blocked the state's newly-imposed ban on abortion after six weeks.
