John,

Congressional Republicans have made clear that everything is on the table as they seek to make massive cuts to critical programs, including healthcare programs for working people and seniors. This includes targeting Medicare and Medicaid, which provide quality healthcare to approximately 150 million people each year.

Now, President Biden is out with his own plan to extend the lifespan of the Medicare Trust Fund and lower out-of-pocket costs for older Americans by expanding Medicare’s ability to negotiate prescription drugs and by closing two egregious tax loopholes exploited by wealthy business owners.

In a newly penned op-ed, Biden writes:[1]

“My budget proposes to increase the Medicare tax rate on earned and unearned income above $400,000 to 5 percent from 3.8 percent....This modest increase in Medicare contributions from those with the highest incomes will help keep the Medicare program strong for decades to come.”

If this sounds a lot like the Assuring Medicare’s Promise Act, which we’re fighting for the U.S. House to pass, it is! Just last month, we directed more than 12,000 letters to members of Congress to extend the lifespan of the Medicare Trust Fund by closing the same two loopholes so that the wealthy pay a fairer share.

President Biden is drawing a clear distinction between Republicans’ deficit reduction plans which are to cut, cut, cut vs. Democratic plans that lower Medicare’s costs and strengthen the Trust Fund―paid for by making the wealthy pay their fair share and holding greedy pharmaceutical corporations accountable.

Pitch in today to fight alongside President Biden in our shared struggle to strengthen Medicare for generations to come.

The president’s plan would make Medicare fully solvent into at least the 2050s.

It would raise hundreds of billions of dollars from wealthy business owners who make more than $400,000 a year and dodge the 3.8% Net Investment Income Tax (NIIT), which generally applies to passive income like capital gains and dividends, and the Self-Employment Contribution Act (SECA) tax, which is paid by wealthy business owners on the wages they pay themselves.

Biden is proposing raising the 3.8% NIIT tax to 5%―over 88% of which would be paid by the highest-income 1%―those making over $885,000 a year. And over half of the tax would come from the highest-income 0.1%―business owners bringing in over $4 million annually.[3]

The president would also save Medicare more than $200 billion over 10 years by expanding Medicare’s ability to negotiate drug prices with pharmaceutical corporations, building on last year’s successful Inflation Reduction Act.

Fight back against Republican plans to cut healthcare benefits with a plan that strengthens Medicare for years to come. Pitch in today!

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As President Biden said today, “Lowering drug prices while extending Medicare’s solvency sure makes a lot more sense than cutting benefits.”

Thank you,

Frank Clemente
Executive Director
Americans for Tax Fairness Action Fund

[1] “Joe Biden: My Plan to Extend Medicare for Another Generation,” New York Times, Mar. 7, 2023
[2] “FACT SHEET: The President’s Budget: Extending Medicare Solvency by 25 Years or More, Strengthening Medicare, and Lowering Health Care Costs,” The White House, Mar. 7, 2023
[3] Americans for Tax Fairness Letter to Congress Supporting Doggett Bill Extending Medicare Trust Fund by Taxing the Wealthy, Feb. 14, 2023