The Washington Post is running a story that Harry Reid is looking into possibly raising the Medicare payroll tax for those making above $250,000 a year:
These officials said one of the options Reid has had under review would raise the payroll tax that goes to Medicare, but only on income above $250,000 a year. Current law sets the tax at 1.45 percent of income, an amount matched by employers.
While not identical to the House’s proposal to put a new surtax on the earnings of millionaires, it is very similar. Both would tax the income of the very wealthy. This is a rare instance when Reid may end up doing a slightly better job framing the debate. A change to the Medicare payroll tax for the super-rich might sound less exotic.
The other important thing is that this tax change would be “health care money.” Many Senate conservatives have been demanding reform only be paid for with money “inside the health care system.” This move might stretch the limits of this weird standard, but if this framing allows it to pass through the Senate, that is all that matters. If Reid can get the Senate bill to more heavily rely on taxing the wealthy, and less on taxing employer-provided health insurance benefits, it could reduce the number of contentious issues needed to be settled in conference.



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want to ‘fix’ social security and fully fund both universal health care and medicare?
fix the FICA rules… i.e., lift the ‘cap’ on FICA payments… currently, this ‘cap’ is about 97k US$… as such, the funding for SS is primarily tied-to the lower income folks… those at the high-end of earnings (you know, the top 1%) DON’T PAY FICA on ANY of their earnings greater than that…
this was put in place by reagan… and RIGHT AFTER THAT we started to hear “Social Security is in trouble…”
lift the cap and instead of using the tax dollars to fund wars, use it to fund SS, Medicare, and Universal Health Care…
… this of course, will NEVER happen… (hint: the millionaires in the Congress and ANY administration will never go along with such a plan because it impacts them and their TRUE constituents… you know them: they write the big campaign donation checks…)