WASHINGTON: President Joe Biden on Tuesday proposed new taxes on the rich to help fund Medicare, saying the plan would help to extend the insurance program’s solvency by 25 years and provide a degree of middle-class stability to millions of older adults.
In his plan, Biden is overtly declaring that the wealthy ought to shoulder a heavier tax burden. His budget would draw a direct line between those new taxes and the popular health insurance program for people older than 65, essentially asking those who’ve fared best in the economy to subsidize the rest of the population.
Biden wants to increase the Medicare tax rate from 3.8 percent to 5 percent on income exceeding $400,000 per year, including salaries and capital gains. The White House did not provide specific cost-saving estimates with the proposal, but the move would likely increase tax revenues by more than $117 billion over 10 years, according to prior estimates in February by the Tax Policy Center.
“This modest increase in Medicare contributions from those with the highest incomes will help keep the Medicare program strong for decades to come,” Biden wrote in a Tuesday essay in The New York Times. He called Medicare a “rock-solid guarantee that Americans have counted on to be there for them when they retire.”
Senate Minority Leader Mitch McConnell, R-Kentucky, was quick to dismiss the plan, telling reporters on Tuesday that Biden’s budget agenda “will not see the light of day.”
More than 65 million people rely on Medicare at a cost to taxpayers of roughly $900 billion every year. The number of Medicare enrollees is expected to continue growing as the US population ages. But funding for the program is a problem with federal officials warning that, without cuts or tax increases, the Medicare fund might only be able to pay for 90 percent of benefits by 2028.
Biden’s suggested Medicare changes are part of a fuller budget proposal that he plans to release on Thursday in Philadelphia. Pushing the proposal through Congress will likely be difficult, with Republicans in control of the House and Democrats holding only a slim majority in the Senate.
The proposal is a direct challenge to GOP lawmakers, who argue that economic growth comes from tax cuts like those pushed through by former President Donald Trump in 2017. Those cuts disproportionately favored wealthier households and companies. They contributed to higher budget deficits, when growth failed to boom as Trump had promised and the economy was then derailed in 2020 by the coronavirus pandemic.
The conflicting worldviews on how taxes would impact the economy is part of a broader showdown. Biden and Congress need to reach a deal to raise the government’s borrowing authority at some point this summer, or else the government could default and plunge the US into a debilitating recession.
Grover Norquist, president of Americans for Tax Reform and an advocate for the kinds of tax cuts generally favored by Republicans, said that the US economy would suffer because of the president’s plan.
“The Biden tax hikes will raise the cost of goods and services for everyone, and make American workers and businesses less competitive internationally and vs. China,” Norquist said.
But Maya MacGuineas, president of the Committee for a Responsible Federal Budget, applauded the plan despite having some reservations about it.
“The president’s plan would generate hundreds of billions of dollars – perhaps even approaching a trillion dollars – to strengthen Medicare,” said MacGuineas, a fiscal watchdog focused on deficit reduction.
White House press secretary Karine Jean-Pierre declined to discuss the numbers behind the budget plan. She told reporters at Tuesday’s briefing that she would not “dive into the math,” but that Biden’s proposal on Thursday “will be very detailed and transparent.”
Ahead of an expected budget feud and the 2024 campaign season, Democrats have ramped up talk around Medicare, vowing to fend off any Republican attempts to cut the program, although so far the GOP has vowed to avoid any cuts. Still, Republican lawmakers have reached little consensus on how to fulfill their promise to put the government on a path toward balancing the federal budget in the next 10 years.
Last year, members of the House Republican Study Committee proposed raising the eligibility age for Medicare to 67, which would match Social Security. But that idea hasn’t moved forward in a split Congress.
Republicans have denied that they plan to cut the program. A proposal from Sen. Rick Scott, R-Fla., that would require Congress to reconsider all federal laws every five years, including Medicare, has gotten little traction.
Raising taxes on Americans who make more than $250,000 to pay for Medicare has broad support among older Americans, but raising the eligibility age for Medicare, is widely unpopular, said Mary Johnson, a policy analyst for the nonpartisan Senior Citizens League who has researched the issue.
Politicians who try that route might “lose supporters and it can backfire. You can wind up losing your office, too,” she said. “A very high percentage of seniors are voting in elections.”
Biden’s plan is also intended to close what the White House describes as loopholes that allow people to avoid Medicare taxes on some income. Besides the taxes, Biden wants to expand Medicare’s ability to negotiate drug costs, which began with the Inflation Reduction Act. He signed the sweeping legislation last year.
The White House said its budget plan would expand the pharmaceutical drug provisions of the Inflation Reduction Act. More drugs would be subject to price negotiations, other drugs would be brought into the negotiation process sooner and the scope of rebates would be expanded.
Taken together, Biden’s new proposals would help shore up a key trust fund that pays for Medicare, which provides health care for older adults. According to the White House, the changes would keep the fund solvent until the 2050s, about 25 years longer than currently expected.
Changes would also be made to Medicare benefits. Biden wants to limit cost sharing for some generic drugs to only $2. The idea would lower out-of-pocket costs for treating hypertension, high cholesterol and other ailments.
Joe Biden plans new taxes on the rich to help save Medicare
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Joe Biden plans new taxes on the rich to help save Medicare
- More than 65 million people rely on Medicare at a cost to taxpayers of roughly $900 billion every year
NATO says new Russian missile will not alter course of Ukraine war
BRUSSELS: The experimental hypersonic intermediate-range missile Russia fired at Ukraine will not affect the course of the war nor NATO’s backing for Kyiv, a spokesperson for the US-led defense alliance said on Thursday.
“Deploying this capability will neither change the course of the conflict nor deter NATO Allies from supporting Ukraine,” said spokesperson Farah Dakhlallah, calling the launch “yet another example of Russia’s attacks against Ukrainian cities.”
Putin hints at strikes on West in ‘global’ Ukraine war
DNIPRO, Ukraine: Russian President Vladimir Putin said Thursday that the conflict in Ukraine had characteristics of a “global” war and did not rule out strikes on Western countries.
The Kremlin strongman spoke out after a day of frayed nerves, with Russia test-firing a new generation intermediate-range missile at Ukraine — which Putin hinted was capable of unleashing a nuclear payload.
Ukraine’s President Volodymyr Zelensky branded the strike a major ramping up of the “scale and brutality” of the war by a “crazy neighbor,” while Kyiv’s main backer the United States said that Russia was to blame for escalating the conflict “at every turn.”
Intermediate-range missiles typically have a reach of up to 5,500 kilometers (3,400 miles) — enough to make good on Putin’s threat of striking the West.
In a defiant address to the nation, Russia’s president railed at Ukraine’s allies granting permission for Kyiv to use Western-supplied weapons to strike targets on Russian territory, warning of retaliation.
In recent days Ukraine has fired US and UK-supplied missiles at Russian territory for the first time, escalating already sky-high tensions in the brutal nearly three-year-long conflict.
“We consider ourselves entitled to use our weapons against the military facilities of those countries that allow their weapons to be used against our facilities,” Putin said.
He said the US-sent Army Tactical Missile System (ATACMS) and British Storm Shadow payloads were shot down by Moscow’s air defenses, adding: “The goals that the enemy obviously set were not achieved.”
Kremlin spokesman Dmitri Peskov did however say Moscow informed Washington of the missile’s launch half an hour before it was fired through an automatic nuclear de-escalation hotline, in remarks cited in state media.
He earlier said Russia was doing everything to avoid an atomic conflict, having updated its nuclear doctrine this week.
White House spokeswoman Karine Jean-Pierre told reporters that Washington saw no need to modify the United States’ own nuclear posture in response.
Ukraine had earlier accused Russia of firing an intercontinental ballistic missile (ICBM) for the first time in history — a claim later downplayed by Washington.
The Ukrainian air force said Moscow had launched the missile as part of a barrage toward Dnipro, where local authorities said an infrastructure facility was hit and two civilians were wounded.
Putin said that Russia had carried out “testing in combat conditions of one of the newest Russian... missile systems” named “Oreshnik.”
Criticizing the global response to the strike — “final proof that Russia definitely does not want peace” — Zelensky warned that other countries could become targets for Putin too.
“It is necessary to urge Russia to a true peace, which is possible only through force,” the Ukrainian leader said in his evening address.
“Otherwise, there will be relentless Russian strikes, threats and destabilization, and not only against Ukraine.”
The attack on Dnipro comes just days after several foreign embassies shuttered temporarily in the Ukrainian capital, citing the threat of a large-scale strike.
“It is another example of reckless behavior from Russia,” a spokesman for British Prime Minister Keir Starmer told reporters.
The spokesman for UN Secretary-General Antonio Guterres, Stephane Dujarric, said the new missile’s deployment was “another concerning and worrying development,” warning the war was “going in the wrong direction.”
Yet a US official played down the threat, saying on condition of anonymity that Russia “likely possesses only a handful of these” experimental missiles.
The head of the Dnipropetrovsk region where the city of Dnipro is located said the Russian aerial bombardment damaged a rehabilitation center and several homes, as well as an industrial enterprise.
“Two people were wounded — a 57-year-old man was treated on the scene and a 42-year-old woman was hospitalized,” said the official, Sergiy Lysak.
Russia and Ukraine have escalated their use of long-range missiles in recent days since Washington gave Kyiv permission to use its ATACMS against military targets inside Russia — a long-standing Ukrainian request.
British media meanwhile reported on Wednesday that Kyiv had launched UK-supplied Storm Shadow missiles at targets in Russia after being given the green light from London.
With ranges of 300 and 250 kilometers respectively, both missile systems’ reach is far dwarfed by the experimental intermediate-range system fired by Russia.
Russia’s envoy to London on Thursday said that meant Britain was “now directly involved” in the Ukraine war, with Andrei Kelin telling Sky News “this firing cannot happen” without UK and NATO support.
But the White House’s Jean-Pierre countered that it was Russia who was behind the rising tensions, pointing to the reported deployment of thousands of North Korean troops to help Moscow fight off a Ukrainian offensive in Russia’s border Kursk region.
“The escalation at every turn is coming from Russia,” Jean-Pierre said, adding that the United States had warned Moscow against involving “another country in another part of the world” — referring to Pyongyang.
The defense ministry in Moscow said Thursday its air-defense systems had downed two Storm Shadows, without saying whether they had come down on Russian territory or in occupied Ukraine.
The missile escalation is coming at a critical moment on the ground for Ukraine, as its defenses buckle under Russian pressure across the sprawling front line.
Russia claimed deeper advances in the war-battered Donetsk region, announcing on Thursday that its forces had captured another village close to Kurakhove, closing in on the town after months of steady advances.
Moscow’s defense ministry said Russian forces had taken the small village of Dalne, five kilometers (three miles) south of Kurakhove.
Lysak, the governor of the Dnipropetrovsk region, said that 26 people had been wounded in another strike on the town of Kryvyi Rig, where Zelensky was born.
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Mali junta appoints general to replace sacked civilian PM
BAMAKO: Mali’s junta has named military officer Gen. Abdoulaye Maiga the new prime minister after sacking civilian Premier Choguel Kokalla Maiga a day earlier following his criticism of the military leaders.
Abdoulaye Maiga had, until now, served as government spokesman in the West African country, which is plagued by extremist and separatist violence and has been led by the military since back-to-back coups in 2020 and 2021.
“Major General Abdoulaye Maiga is appointed prime minister,” said a decree issued by junta chief Gen. Assimi Goita and read out by the secretary general of the presidency on state television station ORTM.
Abdoulaye Maiga was not in the first group of colonels who overthrew the civilian president in August 2020 and who have since been promoted to generals, but he quickly joined them.
His appointment to replace civilian prime minister Choguel Kokalla Maiga confirms the military’s hold on power.
In June 2022, the junta promised to organize elections and hand over power to civilians by the end of March 2024 but later postponed elections indefinitely. Gen. Maiga will have to form a new government to replace the one sacked on Wednesday, which the junta closely controlled. Some key junta figures, such as Defense Minister Gen. Sadio Camara and Minister of Reconciliation General Ismael Wague, were Cabinet members.
Kenya scraps Adani deals as Ruto attempts to reset presidency
NAIROBI: Kenyan President William Ruto sought on Thursday to turn the page on a challenging year, canceling controversial deals with India’s Adani Group and vowing to tackle corruption, police kidnappings, and gender-based violence.
With the country on edge over multiple issues, there was a heavy police presence around parliament in Nairobi ahead of Ruto’s annual State of the Nation address.
His speech did not shy away from the many controversies during his administration.
The biggest shock was his announcement that India’s Adani Group would no longer be involved in plans to expand Kenya’s electricity network and its main airport, Jomo Kenyatta International.
The Adani Group was to invest $1.85 billion in the Jomo Kenyatta airport and $736 million in state-owned utility KETRACO, despite claims of corruption in the procurement process.
The final straw may have come when the Indian group’s founder, Gautam Adani, was charged in the US on Wednesday with massive bribery and fraud. Ruto said his decision was based on “new information provided by investigative agencies and partner nations.”
He also addressed the deep concern in Kenya over a spate of abductions by security forces following mass protests between June and August over an unpopular finance bill.
Rights groups accuse the security forces of a brutal crackdown, with more than 60 people killed during the protests and dozens kidnapped in the following months, many of them tortured and some killed.
Ruto said many detentions were legitimate actions against “criminals and subversive elements.”
But he added: “I condemn any excessive or extrajudicial action which puts the life and liberty of any person at risk, including disappearances and threats to life.”
He also addressed gender-based violence after reports that 97 women have been murdered in the last three months alone.
To loud cheers from the women in parliament, Ruto called on all of society to help raise boys “into morally upright men who will never need to affirm their masculinity at the expense of women.”
Ruto won a hard-fought election in 2022 with a pitch to help the country’s poor.
However, large debts have left Kenya spending more on interest payments than health and education.
While economic growth has remained relatively strong at 5.4 percent last year, a third of Kenya’s 52 million people live in poverty.
“It is undeniable that for many Kenyans, times are hard, and the struggle to meet their basic daily needs is daunting,” Ruto said.
But he listed a series of successes, including taming inflation — down from 9.6 percent to 2.7 percent over two years — stabilizing the currency and increasing agricultural production.
He also heralded a new health insurance scheme, beset by technical difficulties since its launch last month.
He vowed it would ultimately provide “accessible and affordable” health care nationwide.
Ruto came into his speech with an urgent need to reset his presidency after mounting criticism, including from church leaders, over abductions, the cost-of-living crisis, and corruption.
Recent weeks have also seen international condemnation over the forced extradition of foreign nationals kidnapped on Kenyan soil, including four Turkish refugees and the Ugandan opposition leader Kizza Besigye.
Heavy gunfire erupts in South Sudan’s capital Juba
- The gunfire began around 7 p.m. local time and continued sporadically for more than an hour before dying down
- Analysts said the sacking of Akol Koor reflected a power struggle at the highest levels of government
NAIROBI: Heavy gunfire erupted in South Sudan’s capital Juba on Thursday evening after security forces moved to arrest the former head of the intelligence service, according to Reuters reporters and an alert sent to United Nations staff.
The gunfire began around 7 p.m. local time (1700 GMT) and continued sporadically for more than an hour before dying down, Reuters reporters said.
A UN safety alert to staff members in Juba, seen by Reuters, said the shooting was related to the arrest of the former head of the National Security Service (NSS). It urged UN staff to shelter in place.
In early October, President Salva Kiir dismissed Akol Koor Kuc, who had led the NSS since the country’s independence from Sudan in 2011, and appointed a close ally to replace him.
Reached by telephone, a military spokesperson said he was trying to establish what was going on.
Analysts said the sacking of Akol Koor reflected a power struggle at the highest levels of government. It came weeks after the transitional government that Kiir leads announced that elections expected in December would be postponed for a second time.
Rival factions loyal to Kiir and First Vice President Riek Machar fought a civil war from 2013 to 2018 that resulted in hundreds of thousands of deaths.
The two have governed together since then as part of a transitional government. There has been relative peace, but the opposing forces clash periodically in addition to frequent fighting among a patchwork of armed groups in rural areas.
