Medicare Surtax

I am writing in response to the editorial “Correction in Medicare Course” (April 25).

Contrary to the editorial’s report, the expected surplus from the Medicare Catastrophic surtax is due to the fact that Congress underestimated the number of middle-income retirees who will be affected by this law.

Any Medicare eligible individual age 65 or older with a tax liability of only $5,400 (a taxable income of just $27,573) will be required to pay the maximum surtax of $800 in 1989. Medicare eligible couples with a joint tax liability of just $10,800 (a combined income of approximately $52,384) will have to pay the maximum surtax of $1,600 ($800 a piece) in 1989. These are not wealthy people.

What’s more, these same middle-income people must pay regular income taxes (federal annuities are fully taxed) in addition to the Medicare surtax. As a result, many of them are being pushed up into the 50% tax bracket.

If senior citizens are required to pay for schools, day care and aid to dependent children, causes which do not apply to them, why should they not get relief from the imposition of legislation which they do not want nor need and which will benefit less than 16% of them? Those who consider the Medicare Catastrophic Act to be “a good program and a health insurance bargain” simply haven’t done their homework and are telling all the world so.

H.T. STEVE MORRISSEY

President

National Assn. of Retired Federal Employees

Washington, D.C.