Stephen Chapman`s column of Jan. 19 is right in one respect, and that is that the new Medicare catastrophic health plan is a ”lousy program.” The rest is pretty shallow thinking.
He says, ”Only the well-to-do will face an increase in their tax bill.” His version of ”well-to-do” is not defined, which is pretty sloppy for a professional writer.
On income taxes of only $2,500 this year the additional Medicare income tax increase will be $750, plus $96 per year in monthly deductions of $4 per month from Social Security checks, or in other words an increase in a couple`s Medicare costs of $846.
This year it is a tax increase of about 30 percent. In 1993, as it escalates in cost, a taxpayer with income taxes of $4,500 will pay an additional income tax of $2,100, plus whatever further monthly deduction is taken from Social Security. This means a better than 50 percent increase in taxes for Medicare.
The burden of this new cost is put on 45 percent of retired people to finance it for the other 55 percent and Mr. Chapman sees nothing wrong with this kind of taxation. The message of this tax bill is to not work 12-hour days, six days a week and save for your retirement, because if you do the government will take it away to provide for those who failed to work and save as you did.
