Soaking the “greedy rich” once again. That is the constant mantra of our government.
The Washington Examiner this week wrote about the latest effort of Speaker John Boehner to cut a budget deal with Democrats. His deal would reportedly raise out-of-pocket costs for seniors on Medicare.
Those single earning over $133,000 and couples earning over $226,000 would be part of his soak-the-rich scheme. Oh, wait! That is supposed to be the domain of Democrats!
The reform package would also discourage over-utilization of Medicare by instituting minimum cost-sharing in so-called “Medigap” plans.
Can we talk truth to power? Does John Boehner understand that, unlike other government programs, this “entitlement” has been paid for by the taxpayer throughout their entire earning career? It is a payback of saved income – NOT a welfare system.
While the tax we pay for Social Security ends when we have made $119,000, we must pay 2.9% Medicare tax on every penny we earn. Our employer does likewise, which helps explain why our incomes are not higher.
Someone earning $200,000 would pay $5800 plus the added .9% tax of $900 each and every year, for a benefit they won’t receive until age 65.
Taxpayers – oh, forgive me – I hear we are now to think of that as a racist term! In addition, “people” must pay for insurance on their health during their working years. If this person worked for 25 years, he will have paid $167,500 to the government. That still is not enough?
A “greedy rich” person making $1 million per year would have paid $950,000, by the way. This is a fine example of how our government redistributes income and makes the wealthy pay more without the people who hate the “greedy rich” even realizing it.
Also punished by this new tax are those who failed to spend every dime they earned. They decided to plan for their futures by saving instead of spending, taking on lower debt by living within their means. It is they who will be earning more in retirement even though their working year incomes were not in the stratosphere. But since they are so “rich”, they will cough it up for those who did not plan ahead.
The Democrats will be thrilled that the Republican leader is wanting to join them to soak the “greedy rich”.