Medicare Tax not raised since 1986....

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Did you know that the tax for Medicare has not been raised since 1986? Obviously this is a problem when the baby boomers have been retiring in huge numbers and people live longer and have more expensive medical procedures and medicines.
 
Originally Posted By: Eddie
Tax for Medicare? Please explain.


2.9% of income is subject to MC tax to pay for program.
 
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You realize that 15.3 percent of your salary pays for social security and Medicare? Yes your employer pays half of that but that's still more money they could be paying you.
 
Originally Posted By: motor_oil_madman
You realize that 15.3 percent of your salary pays for social security and Medicare? Yes your employer pays half of that but that's still more money they could be paying you.


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In before the lock.
 
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It wouldn't take much of a FICA increase to secure SS for decades to come. I paid into FICA from my first paycheck to the last paycheck and now I enjoy the benefits.The system needs to be more closely monitored because it is being egregiously abused by medical providers billing Medicare for services not rendered. In my opinion, chiropractors are the worst of the bunch.
 
Originally Posted By: motor_oil_madman
You realize that 15.3 percent of your salary pays for social security and Medicare? Yes your employer pays half of that but that's still more money they could be paying you.


Up to 110k of earnings. Higher earners don't pay this tax.
 
Basic question: if a tax is a percentage, why would you expect the rate to increase? The adjustment for inflation and wage inflation is already built in. The expectation should be that as things become more efficient, the rate should decrease rather than decrease.
 
Originally Posted By: Alfred_B
Originally Posted By: motor_oil_madman
You realize that 15.3 percent of your salary pays for social security and Medicare? Yes your employer pays half of that but that's still more money they could be paying you.


Up to 110k of earnings. Higher earners don't pay this tax.


High earners do pay the tax... just on the first 110k of income. If you make 200k, 90k is not subject to the tax.
 
The rate hasn't changed, but the gross amount collected has gone way up since 1986. People make way more than they did then. 2.9% of what I make now is much more than 2.9% of what I made back in 1986.
 
Originally Posted By: djb
Basic question: if a tax is a percentage, why would you expect the rate to increase? The adjustment for inflation and wage inflation is already built in. The expectation should be that as things become more efficient, the rate should decrease rather than decrease.



Real wages have been stagnant for a long time, i.e. wage increases are at inflation rate in the long run, while the medical expenditure increases have outpaced inflation as the pool of eligible persons increases, the comorbidities become complex and people with chronic illnesses have a prolonged life spans.
 
Originally Posted By: Alfred_B
Originally Posted By: motor_oil_madman
You realize that 15.3 percent of your salary pays for social security and Medicare? Yes your employer pays half of that but that's still more money they could be paying you.


Up to 110k of earnings. Higher earners don't pay this tax.



They don't pay the social security portion, but I don't think the Medicare portion phases out.
 
Originally Posted By: RamFan
Originally Posted By: motor_oil_madman
You realize that 15.3 percent of your salary pays for social security and Medicare? Yes your employer pays half of that but that's still more money they could be paying you.


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In before the lock.




Yes sir. I wanted to squeeze that one in there. Lol
 
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