General Discussion
In reply to the discussion: How about raising the Medicare age on the top one percent? [View all]mainer
(12,555 posts)The cost of means testing 100% of seniors ends up costing the federal government way more than they'd recover from denying benefits to the 1%.
Also, it erodes support by the very people who pay a larger amount into SSN/ Medicare. if you're a high-earner, and you're paying money into these programs knowing you'll never get it back, that turns it into a welfare program, not a universal program. That's a pretty good way to kill the programs entirely, when the 1% withdraws all support for it.
Don't forget: high earners are huge contributors to Medicare, unless they form an S-corp. 100% of their earnings are subject to Medicare taxes. One high-earning friend I have was paying essentially a BMW's worth into Medicare taxes EVERY YEAR. If you tell him you're going to take away his access to Medicare when he retires, you think he's not going to fight the system? A system that gives him nothing in return for a lifelong of contributions?