Brilliant Article: Why Republicans Can’t Propose Spending Cuts

[LeftInTX]

16. I think Medicare B & D is partially funded via income tax?

Hospital Insurance (HI) Trust Fund
How is it funded?

Payroll taxes paid by most employees, employers, and people who are self-employed
Other sources, like income taxes paid on Social Security benefits, interest earned on the trust fund investments, and Medicare Part A premiums from people who aren't eligible for premium-free Part A

What does it pay for?

Medicare Part A (Hospital Insurance) benefits, like inpatient hospital care, skilled nursing facility care, home health care, and hospice care
Medicare Program administration, like costs for paying benefits, collecting Medicare taxes, and combating fraud and abuse

Supplementary Medical Insurance (SMI) Trust Fund
How is it funded?

Funds authorized by Congress
Premiums from people enrolled in Medicare Part B (Medical Insurance) and Medicare prescription drug coverage (Part D)
Other sources, like interest earned on the trust fund investments

http://www.medicare.gov/about-us/how-medicare-is-funded/medicare-funding.html