Biden Proposes Tax Increases on High Earners to Shore Up Medicare Finances and Lower Drug Prices

President Joe Biden unveiled a series of proposals on Tuesday that would shore up Medicare’s finances and give the program more leverage over prescription drug prices. The proposals, which will be included in the budget document to be submitted to Congress on Thursday, would raise taxes on the nation’s highest earners while making some drugs and mental health visits cheaper for individual Medicare beneficiaries.

In an op-ed published in the New York Times, Biden wrote that his budget proposes to increase the Medicare tax rate on income above $400,000 from 3.8 percent to 5 percent. The president is scheduled to release his budget proposal during a trip to Philadelphia on Thursday.

The White House said the proposals are intended to highlight the need for Congress to act on the president’s budget proposals. The budget document will guide federal spending for the upcoming fiscal year.

Biden’s budget also seeks to prevent the tax that supports Medicare from being used for other purposes. The president said this would ensure that the program is adequately funded and can continue to provide quality care to those who rely on it.

The president’s budget proposals come at a critical time for Medicare, as the program faces a projected shortfall of $2.7 trillion over the next decade. The proposals are intended to ensure that the program is adequately funded and can continue to provide quality care to those who rely on it.