How to get an automatic Medicare benefit payment
Medicare beneficiaries have been getting a $7.7 billion annual benefit payment over the past two years from the government, but the program is only being paid for if they get insurance through an employer.
Now that it is in place, the Trump administration has begun to push to eliminate the Medicare payroll tax on employer-sponsored health insurance.
That’s because, under current law, the tax is used to finance the program.
It’s estimated the tax will raise $10.5 billion over 10 years, according to a report by the Congressional Budget Office.
The Trump administration argues that eliminating the payroll tax would be a boon to the economy.
But it’s not clear that the elimination of the tax would actually increase economic growth.
The CBO estimates that eliminating payroll taxes would result in an increase in payrolls that would have to be paid by businesses and individuals in order to generate economic growth, according the nonpartisan Congressional Budget Committee.
The Trump administration could also potentially reduce or even eliminate the tax by changing regulations, according an analysis by the Tax Policy Center, a Washington-based research and advocacy group.
If the administration chooses to do that, it would likely create new revenue to cover the costs of the program, the report found.
But eliminating the tax won’t be easy.
The administration has said that eliminating it would mean more than $10 billion a year would be lost, though that estimate includes a small increase to the Medicare Trust Fund that pays for the program through 2021.
The money would then be used to pay for Medicare Part D benefits, which would be more expensive.
“It’s just a very complicated question,” said Mark Mazur, an economist at the Brookings Institution, a nonpartisan think tank.
“You’re going to have a lot of money coming into Medicare, and that’s what they want to use that money for.”
But the tax could also have a significant negative impact on the economy, Mazur said.
“I think that is probably going to be a significant part of it, because that would be the first step in cutting Medicare spending, if you will,” he said.
Mazur said that the administration’s argument that eliminating tax increases will help the economy is also incorrect.
“This administration is going to say, ‘We’re going down the path to save money and cut taxes, so we’ll get this benefit through tax reform,'” he said, adding that the idea of cutting taxes would be less effective than doing so through a tax overhaul.
Mizi Gansler, a senior fellow at the left-leaning Center for American Progress, called the administration argument that it would be better to cut taxes than pay for the Medicare benefit a “nonsense argument.”
“It will be very difficult to make the case that you’re going do this through tax cuts and pay for it with tax cuts,” Ganser said.
In fact, economists and others have been arguing for years that eliminating taxes is the best way to create jobs.
The Tax Policy Project, a research group, has estimated that eliminating Medicare payroll taxes on employer coverage would result the U.S. in a $1.5 trillion surplus in 2020.
And a study by the Economic Policy Institute, a think tank, has projected that eliminating a payroll tax could generate more than 1 million jobs a year.
A spokesperson for the Office of Management and Budget said in a statement to ABC News that the Administration will continue to work with Congress to develop solutions to the health care system.
The Administration is continuing to work to reform Medicare and to expand the benefits that are available to Medicare beneficiaries and employers, the statement said.