With negotiations continuing in Congress related to the fiscal crisis that Congress has caused, I want to add an alternative to the debate. I say that we should substantially increase employee payroll tax rates designated to Medicare.
Let’s put this in context. I read earlier today that Medicare is 15% of federal spending and set to grow to 19%. It is a popular government program that is racing to bankruptcy as expenses are outpacing liabilities. Paying for government expenses through taxation is a better solution than paying for them with debt and devaluing the currency.
Therefore, I recommend that we increase Medicare payroll taxes to fund that program. However, this tax burden should fall solely upon the employees, who so favor Medicare; it is easy to favor a program for which one does not actually pay the full price. Further, this tax level should be automatically indexed to expected Medicare expenses so that the tax rate will rise as more money is spent on Medicare and lower if Medicare expenses reduce.
While employers currently match Medicare payroll taxes paid by the employee, these increase in taxes should not be assessed to employers. Why? Increasing employer taxes on wages will reduce employment, economic grow, wage growth, and tax revenue; only a vindictive imbecile would support such indirect taxation, which harms workers. In fact, current Medicare taxes paid by employers should be shifted on to the employees as part of a strategy to reduce the penalty our government puts upon employers for hiring.
If you want both jobs and Medicare, then support this call for yourself to pay your actual share of this liability by increasing the taxes withheld from your paycheck for Medicare. According to the federal government, Medicare is your “insurance” so shouldn’t you pay for it, if you support the program.
Personally, I oppose Medicare; I think that it should be phased out through an orderly transition. If I could opt out of it, I selfishly would, but thuggish supporters of the program will not allow me as an individual to exercise my independent judgment and opt out. Given no choice about whether to pay for this program, I advocate raising Medicare payroll taxes on employees to pay for it so that its supporters will actually pay Medicare’s actual costs.
If you support Medicare, pay for it yourself from your own paycheck.