President Joe Biden delivers the State of the Union address to a joint session of Congress at the U.S. Capitol, Tuesday, Feb. 7, 2023, in Washington. (AP Photo/Patrick Semansky)
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.
President Joe Biden is using his State of the Union address Tuesday night to call on Republicans to work with him to “finish the job” of rebuilding the economy and uniting the nation as he seeks to overcome pessimism in the country and navigate political divisions in Washington.
U.S. officials say efforts ordered by President Joe Biden to strengthen defenses against Chinese espionage helped identify last week’s spy balloon — and determine that similar flights were conducted at multiple points during the Trump administration.
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Republicans said President Joe Biden allowed China to spy on the U.S. by not shooting the balloon down sooner while Democrats said similar incursions happened during the Trump administration.
