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View Diary: What are some Progressive Solutions to the "Medicare Problem"? (70 comments)

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  •  There is no income cap for Medicare. (2+ / 0-)
    Recommended by:
    VClib, misslegalbeagle

    I think you are confusing it with Social Security.

    •  there is an income cap (1+ / 0-)
      Recommended by:

      of our FICA Payroll Taxes,

      and if I'm not mistaken Wall Street capital gains,

      are exempt from FICA entirely.

      Here's how the game is really Rigged.

      by jamess on Sun Jan 20, 2013 at 05:57:59 PM PST

      [ Parent ]

      •  looks like Medicare Tax, does not have a cap (0+ / 0-)
        Under the Federal Insurance Contributions Act (FICA) 12.4% of earned income up to an annual limit must be paid into Social Security, and an additional 2.9% must be paid into Medicare.

        That limit is $110,100 for 2012.

        There are no earned income limits on Medicare taxes -- so even if your salary is well above the cap for Social Security tax, you will still owe Medicare tax on your total earned income.

        If you're a wage or salaried employee, you pay only half the FICA bill (In 2012, 4.2% for Social Security plus 1.45% for Medicare), and the tax is automatically withheld.

        Here's how the game is really Rigged.

        by jamess on Sun Jan 20, 2013 at 06:07:02 PM PST

        [ Parent ]

      •  FICA is both SS and Medicare (2+ / 0-)
        Recommended by:
        jamess, misslegalbeagle

        See here.

        There are earned income limits to Social Security ($110,000) because Social Security is wage insurance, your retirement benefits are based on what amount of wages you "insure" -- the more you insure, the more your monthly retirement check, so the cap on the amount of wages you insure corresponds to the cap on the monthly retirement benfit.  But there is no cap on  Medicare.   In fact, the Affordable Care Act increased Medicare taxes for all earnings over $200,000.

      •  jamess - not for Medicare (1+ / 0-)
        Recommended by:

        Started 1/1/13.

        "let's talk about that"

        by VClib on Sun Jan 20, 2013 at 07:19:11 PM PST

        [ Parent ]

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