WASHINGTON (Nexstar) – On Tuesday, President Joe Biden unveiled a preview of his budget proposal, which includes his plan to keep Medicare funded by raising taxes on Americans with high earnings.
Biden unveiled a preliminary budget at the State of the Union address, at which Democrats and Republicans cheered for the idea of not cutting Social Security or Medicare.
“The president’s budget will address what Americans care most about, extending Medicare solvency by 25 years,” Sen. Chuck Schumer (D-NY) said.
The White House says the plan will also lower some costs for older Americans who receive Medicare.
To pay for it all, President Biden proposes raising Medicare taxes on Americans who earn more than $400,000 a year from 3.8% to 5%.
The plan would also close loopholes to ensure capital gains and other income is subject to the Medicare tax.
However, Republicans on Capitol Hill are not happy with the president’s budget proposal and say they plan to block it.
“The president’s budget is replete with what they would do if they could. Thank goodness the House is Republican,” Sen. Mitch McConnell (R-KY) said.
So far, there are just select highlights from the president’s budget as he plans to unveil the full proposal on Thursday in Philadelphia.