Byrnes: Increased earnings taxpayers don’t obtain any extra Medicare advantages above and past what each different American receives. In reality, these taxpayers are prone to pay far more into the system as a result of they usually buy “Medigap” plans to cowl any extra bills not lined by conventional Medicare — and, by definition, they’re topic to the present Medicare fee on a better quantity of earnings than lower-income taxpayers. By these requirements, high-income Individuals are already paying extra for a similar advantages.
Bloink: By requiring the very best earnings taxpayers to pay a further proportion on any earnings above $400,000, we are able to each defend the Medicare program’s solvency and be certain that the wealthiest Individuals are paying their fair proportion for advantages they too obtain. It’s necessary to keep in mind that this tax would apply to each earned and unearned earnings — which means it could additionally apply to dividends and different passive forms of earnings which are usually topic to decrease tax charges.
Byrnes: Elevating the tax fee for Medicare payroll taxes could be extraordinarily inequitable given the character of this so-called entitlement program — given that each American is eligible to obtain solely the identical fundamental Medicare profit no matter their tax fee. One more tax hike earmarked towards the Medicare program shouldn’t be the best way to resolve this system’s solvency points.
Bloink: The underside line is that rich Individuals have the flexibility to skirt taxes just like the Medicare payroll tax by way of using many alternative tax loopholes. Thus far, we’ve been unable to remove these loopholes to make sure all Individuals are paying their fair proportion. Imposing this Medicare surtax on each sort of earnings above $400,000 would serve to ensure that Individuals are unable to keep away from paying into this program that’s essential to all Individuals.
Byrnes: Now shouldn’t be the time to be rising taxes. Our financial local weather is extraordinarily fragile proper now. Companies are nervous about market circumstances, inflation and the potential of coming into a protracted recession. We must be targeted on reining within the prices of well being care and lowering the affect of inflation for all Individuals. These tax hikes are unrealistic and can by no means truly turn into regulation.
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