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Proposed Tax Hike Could Help Medicare

If you receive Medicare coverage, you might be worried about the lack of COLA in 2010, combined with the possibility of higher costs for Medicare. There could be some help on the way if Senate majority leader Harry Reid has his way.

According to The New York Times, Reid has proposed to increase the Medicare tax on payroll for those making over $250,000 annually. Currently, both employers and employees pay 1.45% of their earnings to the Medicare tax, but Reid wants to increase it for the wealthy to 1.95%.

The increase could provide up to $50 billion extra in the next decade, helping to fund Medicare so that the elderly and those with disabilities can continue to have inexpensive healthcare. This is especially helpful now, considering that some recipient's Medicare premiums are set to increase in 2010.

Some senators in the Democratic party have also proposed that the tax be applied to other areas, not just wages. They could include income received from rental properties, as well as capital gains, to name a few options that apply to many wealthy people.

There are some objections to the proposed bill, including the complaint that a higher tax on Medicare would not solve the issue of increased spending in the healthcare arena. Such people claim that increased taxes on extensive health insurance coverage plans would be a better resolution, though it would likely affect the middle-class more than the wealthy.

If all goes according to Reid's plan, you could see the finished bill being debated in the next few weeks. If you want to receive updates on issues that could affect you, such as the status of Medicare, you can contact a lawyer who stays in-the-know about such topics. Considering the effect Medicare costs have on those receiving disability and SSI payments, it is crucial to stay informed on any changes coming up.

Fort Lauderdale, Florida disability lawyers, LaVan & Neidenberg, represent over 5000 disability claimants. Our disability attorneys have experience with cross examining agency-appointed medical and vocational experts and take time when speaking with you about your disability claim. Call us today at 1-888-234-5758 for a FREE legal consultation. There is NO OBLIGATION to hire our firm and there are NO FEES unless one of our trained disability lawyers wins your case.