Show Burton Burlon Objects To Medicare In commenting upon the Administrations Administration's Administrations Administration's Ad Ad- ministrations ministration's Medicare Bi Dill 11 which has come before the House of Representatives Rep Laurence J. J Burton Utah R-Utah said Saddling of Americas America's Americast t I bil billion lion tax tax liability tops a broad list of objections to the measure measure mea mea- sure MR BURTON said the billion sum will be needed to pay for the hospital program for i 1 persons now over 65 who have not contributed through Social Security taxes to hospital hos hose pital coverage plus those approaching approaching approaching ap ap- 65 who will have paid only a nominal part of the cost of the benefits they will be eligible for at age 65 It is estimated Mr Burton Burton Durton Bur Dur- ton said that the cost of the administrations administration's hospitalization program for an employee startIng starting starting start start- ing work at age 21 with interest interest interest inter inter- est calculated at 35 per cent will total over the 44 years that will pass before h ht hE becomes become eligible for any hos hospital hospital hospital pital benefits whatever Every cent of Social Security tax paid during those 44 years will go goto goto goto to finance hospital benefits for those already retired some of whom will have paid no Social Security tax and others only a nominal tax THE TilE CONGRESSMAN listed other objections to the administration admin bill I. I The bill still fails to cover two of the basic health needs of the aged ie i.e. the high and recurrent costs of drugs and the present ever-present risk of catastrophic illnesses 2 It excludes from hospital coverage some present present- by hy retired federal employees and their spouses and all fu ture lure retirees 3 Reliance on the Social Security Security Security Se Se- payroll tax to finance the hospitalization a m jeopardizes the cash benefit program under the system by loading onto it a liability to finance fi finance fi fi- nance future service by benefits benefits bene bene- 9 fits which cannot now be esti- esti 9 mated THE SOCIAL Security payroll pay pay- payroll roll tax with which the Administration Administration Administration Admin Admin- plan would finance hospital costs is one of the most unfair and regressive taxes in our entire tax system Mr Burton said It applies to the first dollar of earnings and there are no exemptions no deductions no exclusions and no tax credits No consideration tion is 15 given the taxpayers taxpayer's ability to pay The president of ofa ofa ofa a large corporation pays the same tax as his workers Under the administration bill cost of the hospital benefits will be financed by increases in the rate of Social Security taxes and the wage base on which these tax liabilities are calculated The ultimate tax rate of 16 per cent by 1987 on a wage base will be bemore bemore bemore more than double the initial tax rate of 7 per cent assessed assessed as as- on a wage base for Additional increases In the tax rate and wage base are provided to pay for the increased in in- increased crea creased ed Social Security cash benefits IN PLACE of the administration administration adminis adminis- bill Republicans have come up with a substitute measure mea sure which would be voluntary rather than compulsory provide provide pro pro- provide vide more comprehensive benefits ben and would be financed partly from general revenues and partly by payments by bytho bythorn tho thorn thoc c participating |