- Democrats intend to levy a tax on some rich Americans to extend
Medicare 's solvency. - It would apply to high-earning individuals and couples who earn money from certain businesses.
Senate Democrats are eyeing a new tax on rich Americans to extend Medicare's lifespan as part of a slimmer economic spending bill they hope to pass by the end of the month.
Under the proposal, Democrats will impose a 3.8% tax on some high-earners who draw income from so-called "pass-through" businesses, per a source familiar with the ongoing negotiations. That would delay a shortfall in the Medicare hospital trust fund to 2031 from 2028, providing a three-year extension for benefits being fully paid.
The tax would apply to individuals who earn $400,000 or more annually and couples, trusts, and estates making at least $500,000.
"Pass-through" businesses — $4 not subject to the corporate income tax — make up the vast majority of American businesses, $4 They range in size from small family-owned shops to large companies and their profits flow to owners who then pay individual income tax on it. Many have been able to avoid paying the 3.8% net income investment tax up to now.
If
Senate Majority Leader
In the past, Manchin $4 about Medicare running out of money to cover its growing spending and has pushed to extend its solvency.
"Medicare is a lifeline for millions of American seniors and Senator Manchin has always supported pathways to ensure it remains solvent," Manchin spokesperson Sam Runyon said in a statement. "He remains optimistic there is a path to do just that."
There's still haggling behind the scenes on other crucial Democratic priorities like clean-energy tax incentives to combat the climate emergency and $4 Democratic aides are still ironing out how to pay for a roughly $1 trillion bill with half of spending going to deficit-reduction in an effort to accommodate Manchin's narrow parameters.
Other tax proposals like a surtax on millionaires $4
But Democrats struck an agreement on some aspects of the bill, like cutting prescription drug prices. Senior Democrats on Wednesday $4 on prescription drug prices to the Senate parliamentarian, the top official overseeing that Democrats are able to pass on their own without the GOP through the reconciliation process.