Mitt Romney has a tax plan. A tax plan that cuts revenue by $900 billion a year; 25% of our total revenue. Tax cuts that he does not seem to know how to pay for.
Two sets of tax cuts in his plan, specifically affect Medicare. So let’s look at those.
First, the Romney would repeal two portion of the Patient Affordability Act that strengthens the financial status of Medicare: (1) the provision that calls for an additional contribution of .9% on the part of those making over $200,000 a year and (2) the 3.8% tax on any capital gains, interest or dividend income over $200,000 a year.
These two changes to Medicare contributions, add $21 billion each year to Medicare. A repeal by Romney would mean $21 billion less in the coffers for senior citizen’s health care.
Mitt Romney is proposing a $900 billion revenue decrease each year via tax cuts. This represents a full 25% of United States tax revenues. There can be little doubt that this would have a negative affect on Medicare.
To be fair, Romney says he would offset these losses through closing loopholes and broadening the tax base. Unfortunately, Romney has not specified which tax “loopholes” he would close or how he would broaden the tax base. Something any good business person would surely do.