Democrats Want to Extend Medicare Solvency by Closing Trump-Era Tax Loophole

Senate Democrats are working with conservative Democrat Joe Manchin (West Virginia) to negotiate the next budget reconciliation bill. They are working on two provisions that would help balance Medicare’s budget as well as close a major Donald Trump tax loophole.

On Wednesday, Chuck Schumer, the Senate Majority leader (D-New York), will address the nation. released a planMedicare will negotiate prescription drug prices for the most expensive drugsCap out-of-pocket expenses for recipients at $2,000 a year. It would also limit the annual price increases that drug companies could make. The Senate parliamentarian is currently reviewing the plan, which has been reported to have the support of all 50 Senate Democrats.

The new drug price proposal is slightly narrower than last year’s proposal, which Also includedA plan to limit insulin’s cost at $35 Progressives like Sen. Bernie Sanders (I-Vermont) had hoped to get Major expansionMedicare, which allows it to negotiate prices for more drugs and expand it to include vision, hearing, and dental care. Added water to reduce the amountThanks to pharmaceutical industry-funded Manchin, Sen. Kyrsten Sinema, (D-Arizona).

Democrats passedThe Senate rejected a bill that would have established the same price limit on insulin earlier in the year. However, the legislation is still stuck in the Senate. Senate Republicans are likelyThe current drug price plan was overwhelmingly rejected by Democrats. However, a reconciliation bill containing roughly $1 trillion in funds that can be passed in Senate with a simple majority vote will be included in their opposition.

Democratic aides also sayAccording to the Associated PressSenate Democrats have announced that they will extend Medicare’s solvency. They’re hoping to raise $203 billion to fund the service until 2031. The program will run out of funds in 2028.

They’re aiming to extend Medicare’s solvency by closing a tax loophole created by Republicans in 2017 that has allowed wealthy executives to dodge hundreds of thousands, if not millions of dollars, in taxes — including Medicare taxes. The current proposal would mean that those with incomes above $400,000 and couples earning more than $500,000 per year would have to pay. a 3.8 percent taxOn earnings from pass-through business, which is a business that passes all of its income onto the owners or investors.

The electorate is extremely supportive of proposals to lower drug prices, expand Medicare, and other reforms. Data for Progress polled last year foundA majority of likely voters support expanding Medicare to include vision, hearing and dental. Another polling was done by CBSThis was found by. 88 percent of people support lowering prescription drug prices.

The popularity of these plans could be due in part to the exceptionally high drug prices in America last year, according the Government Accountability Office Report foundPrices for 20 brand name prescriptions were approximately four times higher in the U.S. that they were in France and Australia, and 2.5 times higher than Canada. The pharmaceutical industry saw a significant increase in sales from the U.S. It was almost doubleThat of the rest combined in 2020.

It is no surprise that the two Medicare provisions are being drafted by Democrats is a sign that Manchin may be in favor of the plans, though the lawmaker played a major role in watering down and ultimately killing the party’s reconciliation bill last year. Democrats hope the new proposal will also include provisions that address the climate crisis. as $300 billionTax incentives for clean energy.