President Joe Biden aims to protect Medicare and reduce health care costs by raising some taxes on wealthy Americans, the White House said Tuesday, putting him on a collision course with Republicans over spending issues.
The Democratic leader teased part of his upcoming budget plan by highlighting his intention to raise Medicare tax rates on people earning over $400,000, which would extend solvency of the country’s government-funded health insurance program for seniors “by at least 25 years,” according to a White House fact sheet.
“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 statement said.
The budget blueprint by the 80-year-old Biden — who has given strong signals he will run for re-election in 2024 — is expected to be unveiled Thursday.
The fact sheet shows a plan to fulfill the president’s promise to raise taxes on the rich, at least regarding Medicare pay-ins. According to the White House, Biden proposes increasing the Medicare tax rate from 3.8 percent to 5.0 percent on income above $400,000 per year.
Some government analyses have estimated Medicare — on which some 18 percent of Americans rely — would become insolvent by 2028.
“By asking those with the highest incomes to contribute modestly more, we can keep the Medicare program strong for decades to come,” the statement says.
White House budget plans are aspirational documents that lay out a president’s priorities. Spending authorization requires congressional approval, and the tax increase proposal sets up a looming clash with Republicans, who control the House of Representatives.
Biden has positioned himself as a defender of blue-collar workers and the middle class. With his Tuesday announcement he could boost his standing with older, white working class voters, who in recent decades have tended to vote Republican.
As his all-but-official campaign for re-election gets underway, the president clearly sought to woo that working class demographic during a speech to first responders.
“No billionaire should be paying a lower tax rate than a firefighter,” Biden said.
