Medicare Taxes to fund Interest Rate Cut Extension

The Dems are proposing another increase in payroll taxes for some individuals making over $250K. They've already increased payroll taxes for most everyone making over $250K with Obamacare.

From what I've read this new proposal will apply to both Social Security and Medicare payroll taxes. The Social Security portion will go towards SS, but the Medicare portion will not go to Medicare but rather be used to subsidize student loans.

The Medicare trust fund is currently going to run out of money in 2024 (and no, LJ, I did not use the work bankrupt). What crazy scheme would raise Medicare payroll taxes and not use the money to strengthen Medicare? Does anyone really think student loan interest rates are more important than Medicare?

The next thing you know the Dems will propose raising federal income taxes to fund Medicare and SS.

Keep payroll taxes seperate from income taxes. If the Dems want to subsidize the student loans, how about cutting spending elsewhere or at least stick to their traditions and propose raising federal income tax rates to pay for it. But really, shouldn't student loans be self funded?

Axelrod's tactic of going after the rich might just backfire on him. Who can afford to buy those $2000 donor dinners? Not the poor, I tell you.
Clinton was smart enough and realized to win elections and fundraising you don't piss off your major donors. Think you can find 20 lower income people to donate $100 each to replace that high roller you are ripping every night for not paying his fair share?

Since it was BUSH that signed the law in to effect in 2007, and it was set to expire in 5 years, i.e., 2012, it had nothing to do with Obama... But, once again, Obama has to clean up another Bush mess. I would have thought that in 8 years of the failed Bush presidency they could have at least potty-trained him.

pineinthegrass wrote: The Dems are proposing another increase in payroll taxes for some individuals making over $250K. They've already increased payroll taxes for most everyone making over $250K with Obamacare.

From what I've read this new proposal will apply to both Social Security and Medicare payroll taxes. The Social Security portion will go towards SS, but the Medicare portion will not go to Medicare but rather be used to subsidize student loans.

If you have a source for that, I'd love to see it... From what I know, that is all a total fabrication of the usual right-wing fertilizer-spreaders, and the usual scare-tactics to spook the ignorant electorate...(which apparently includes about 95% of the teabaggers and the GOP).

PrintSmith wrote: Neither will the electorate once they understand the Democrats wanting to raise taxes on Medicare.

Raising the taxes on medicare? there are no taxes ON medicare. Some conservatives just don't understand math .....

LadyJazzer wrote:

pineinthegrass wrote: The Dems are proposing another increase in payroll taxes for some individuals making over $250K. They've already increased payroll taxes for most everyone making over $250K with Obamacare.

From what I've read this new proposal will apply to both Social Security and Medicare payroll taxes. The Social Security portion will go towards SS, but the Medicare portion will not go to Medicare but rather be used to subsidize student loans.

If you have a source for that, I'd love to see it... From what I know, that is all a total fabrication of the usual right-wing fertilizer-spreaders, and the usual scare-tactics to spook the ignorant electorate...(which apparently includes about 95% of the teabaggers and the GOP).

It's from the right-wing Associated Press...

Senate Democratic aides said their bill would pay for itself with around $6 billion in extra Medicare taxes that would be collected over the next decade from the private companies.

That money would normally go to a Medicare trust fund for financing the hospital care the program provides its elderly recipients. Democrats said their payroll tax language would also raise $3 billion in new Social Security revenue, but that money would go to Social Security's trust fund and not be used to pay for the student loan legislation.

http://www.ocala.com/article/20120425/WIRE/120429815/1005/sports01?p=1&tc=pg

Page 3 of the above.

PrintSmith wrote: And will the resulting funds from closing that loophole in the earnings subjected to Medicare tax be used to fund Medicare Dog? No, those funds will be appropriated by the Democrats to be spent on something other than Medicare. Which means that contrary to the lies that the electorate is continually told that Medicare Taxes and Social Security Taxes will never be used for anything other than to pay for those programs, it is now apparent to everyone that those taxes can be used to purchase votes from any special interest group chosen by the current cabal sitting in Congress.

Care to address the point being made Dog? That the Democrats and the President are wanting to appropriate funds from Medicare and use them for other purposes?

Oh the "outrage"!!! The funds above and beyond needed to cover the medicare obligations have been appropriated for other uses for decades. This is not a new ploy by the current administration, but has been done by previous administrations since Johnson. Johnson diverted funds from medicare and SS to pay for the Great Society, Reagan used it for anti-union activities and tax cuts for the wealthy, Bush used it for his unfunded tax cuts, etc. In fact, the only president who did not divert from these funds was Carter. It really became prevalent after Reagan raised payroll taxes to create the surpluses.

If you really want to be outraged over the diversion of medicare funds, then take a look at the immoral House GOP budget, where the GOP wants to take over a trillion dollars out of the medicare funds and raise the interest rates on student loans rather than raise taxes on the wealthiest one percent. But spare us this hysterical "outrage" over the proposed plan as something nefarious and only done by the current administration.

If you want to argue that the surpluses in the payroll taxes should be kept in trust to cover future shortfalls in medicare and Social Security, that is a legitimate argument. But to somehow be outraged by the current administration plan to use this surplus for student loan interest, that is completely dishonest and bogus, as every administration since Johnson has diverted this surplus for their own agendas.

pineinthegrass wrote: The Dems are proposing another increase in payroll taxes for some individuals making over $250K. They've already increased payroll taxes for most everyone making over $250K with Obamacare.

From what I've read this new proposal will apply to both Social Security and Medicare payroll taxes. The Social Security portion will go towards SS, but the Medicare portion will not go to Medicare but rather be used to subsidize student loans.

The Medicare trust fund is currently going to run out of money in 2024 (and no, LJ, I did not use the work bankrupt). What crazy scheme would raise Medicare payroll taxes and not use the money to strengthen Medicare? Does anyone really think student loan interest rates are more important than Medicare?

The next thing you know the Dems will propose raising federal income taxes to fund Medicare and SS.

Keep payroll taxes seperate from income taxes. If the Dems want to subsidize the student loans, how about cutting spending elsewhere or at least stick to their traditions and propose raising federal income tax rates to pay for it. But really, shouldn't student loans be self funded?

Interesting that for some, the closing of a tax loophole that enabled some of the wealthy to avoid paying payroll taxes is seen as a tax hike.

archer wrote:

PrintSmith wrote: Neither will the electorate once they understand the Democrats wanting to raise taxes on Medicare.

Raising the taxes on medicare? there are no taxes ON medicare. Some conservatives just don't understand math .....

Quite right - it should have read, "Neither will the electorate once they understand the Democrats wanting to raise taxes for Medicare to pay for something other than Medicare." Thank you for catching that.

Something the Dog Said wrote: If you want to argue that the surpluses in the payroll taxes should be kept in trust to cover future shortfalls in medicare and Social Security, that is a legitimate argument. But to somehow be outraged by the current administration plan to use this surplus for student loan interest, that is completely dishonest and bogus, as every administration since Johnson has diverted this surplus for their own agendas.

From Johnson forward, the money "placed into trust" funds has been "borrowed" from those "trust funds" by the general government for other uses, not directly appropriated from the tax revenue raised for those programs. The Democrats in the Senate and the President are not proposing to "borrow" that additional revenue and pretending that it will be paid back, with interest, at a later date as all others have done - they are proposing to directly appropriate that tax revenue for other uses without a penny of it reaching either the program or the "trust fund".