Beware of Medicare: Why Tax Cuts Are No Threat To Medicare
In this Backgrounder, the authors write that the arcane character and complexity of Medicare’s financing formulas as well as the federal budget make it easy for opponents of the President’s plan to misrepresent Medicare’s true financial condition and frighten vulnerable senior citizens. The fact is that both eligibility for Medicare and Medicare benefits are entitlements set by law. Moreover, neither President Bush nor any principal congressional proponent of Medicare reform is proposing a change in Medicare eligibility or benefits in order to provide tax relief. Medicare reform and tax relief are both vital to the economic health of the country and achievable. Nevertheless, opponents of these policies often make claims that pit tax relief against Medicare reform. These “Mediscare” claims are riddled with misinformation.
The article privides answers to many claims made about medicare, including a rebuttal that tax refief will harm Medicare funding.