Joe Biden will propose raising taxes on people who earn more than $400,000 and lowering what Medicare pays for prescription drugs.
Joe Biden will propose to increase the taxes on people who earn more than $400,000 dollars and reduce what Medicare pays for prescription drugs in an attempt to keep the program stable, the Washington Post reported Tuesday.
“The president’s budget extends the life of the Medicare Trust Fund by at least 25 years”the article said, based on information from the plan.
The White House proposal would raise the net investment income tax, created by the Affordable Care Act, to 5% from 3.8% for all Americans earning more than $400,000 a year, according to the article.
Looking at the elections
With an eye on 2024, US President Joe Biden will present his budget plans for the election year in Pennsylvania, a state with enormous electoral weight, instead of the traditional event held at the White House.
Biden’s trip to Philadelphia on Thursday is a sign that the president’s budget proposal is part of a larger-scale political effort to connect with voters and not just an outline of the government’s finances for the next fiscal year.
The White House budget plan will be a “what if” document, meant to tell voters What the federal government could do if Democrats control the White House and Congress.
The president hinted in a speech Monday that tax increases for the wealthy will be a key part of his budget plan, declaring that one provision is aimed at billionaires.
“Part of that is making the tax system fair. We can make all these improvements and continue to reduce the deficit if we start making people pay their fair share.”he claimed.
Democrats and Republicans are currently competing to show the public which party is more responsible on fiscal matters.
Source: Ambito
