what do payroll taxes cover
I get the impression that many Americans believe Medicare is financed like Social Security. They know that a portion of payroll taxes goes to Social Security and a portion goes to Medicare. So they conclude workers are paying for Medicare benefits the same way they are paying for Social Security benefits. That isnât remotely true, as new data from the Congressional Budget Office demonstrate. In 2010, payroll taxes covered a little more than a third of Medicareâs costs. Beneficiary premiums (and some other earmarked receipts) covered about a seventh.