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.
Wall Street Journal reporter Evan Gershkovich lost an appeal Tuesday to be released from jail on espionage charges, meaning he will remain behind bars at least through Nov. 30.
Palestinians in the sealed-off Gaza Strip are scrambling to find safety, as Israeli strikes demolish entire neighborhoods, hospitals run low on supplies and a power blackout is expected within hours.
The U.S. has already begun delivering critically needed munitions and military equipment to Israel, and the State Department now says that at least 11 American citizens have been killed in the weekend Hamas attacks on Israel.
California Gov. Gavin Newsom rejected a bill on Sunday that would have made free condoms available to all public high school students, arguing it was too expensive for a state with a budget deficit of more than $30 billion.
