Bloomberg Tax
July 7, 2022, 4:11 PM

Democrats Plan to Extend Medicare Solvency in New Biden Bill (1)

Erik Wasson
Erik Wasson
Bloomberg News

Senate Democrats have reached a deal to extend the solvency of Medicare by closing a tax loophole frequently used by law firms and other partnerships, adding another leg to President Joe Biden’s revised economic agenda.

The agreement by all 50 members of the Senate Democratic caucus to require so-called pass-through businesses to pay a 3.8% health surcharge on some income follows a separate deal announced on prescription drug pricing, announced Wednesday.

The two deals will form part of a budget bill embodying pieces of Biden’s long-stalled agenda that Democrats hope to pass without Republican support by the time of ...