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.
Getting you caught up on the stories you need to know this morning: Matthew McConaughey lends his voice to the gun control fight in congress, at least 30 people were injured in Germany after a car plows into a crowd, and a new weight loss drug shows promising results.
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As abortion rights take center stage in courts around the country, so do discussions about reproductive health. Signs and social media posts say things like "protect women's rights" and "her body, her choice," leaving others who need and receive abortions completely out of the picture. The potential end to Roe v. Wade would impact far more people and facilities than you may think. Cheddar News' Baker Machado breaks it all down.
Arkansas is planning to reshape itself by putting a strong emphasis on technology through computer science in the classroom. Governor Asa Hutchinson joined Cheddar News Buffa to discuss the state's efforts to promote itself as a future tech hub. “It gives young people such a huge opportunity for success," he noted. The term-limited governor also touched on the issue of gun ownership, offering up the idea of possibly raising the age limit to obtain rifles like the AR-15 to 21 instead of 18 as it currently stands.
