President Joe Biden will propose hiking taxes on some Americans making over $400,000 per year and allowing the government new power to negotiate drug prices as part of a plan to extend the solvency of a key Medicare program, according to an op-ed published Tuesday.
(Bloomberg) — President Joe Biden will propose hiking taxes on some Americans making over $400,000 per year and allowing the government new power to negotiate drug prices as part of a plan to extend the solvency of a key Medicare program, according to an op-ed published Tuesday.
“This modest increase in Medicare contributions from those with the highest incomes will help keep the Medicare program strong for decades to come,” Biden wrote Tuesday in an op-ed published in the New York Times. “My budget will make sure the money goes directly into the Medicare trust fund, protecting taxpayers’ investment and the future of the program.”
Biden said his budget, which will be released Thursday, will propose raising Medicare taxes from 3.8% to 5% on certain kinds of annual income above $400,000, and eliminating a loophole business owners can exploit to avoid additional taxes.
Biden also wrote that he will propose to boost Medicare’s authority to negotiate the price of prescription drugs and to open those negotiations sooner after the drugs’ launch. The Washington Post also reported details of Biden’s plan.
Biden’s budget proposal has little chance of becoming law, especially after Republicans took control of the House of Representatives this year, but it’s an important political sign and allows the president a chance to publicly outline his priorities.
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