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It’s actually worse than this because 43% of Medicare spending is funded from general revenues. Kaiser Family Foundation has a good fact sheet on the topic: http://www.kff.org/medicare/7305.cfm
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yes, seems a bit high… but i think there is nothing you can do about this…
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“Previous studies have indicated that all taxes employers pay on employees behalf is funded through lower employee earnings. In other words, if the employer didn’t have to pay these taxes, your salary would be 7.65% higher. Ouch!”
If this is true it raises the question why employees would not be willing to work for 7.65% less. The obvious answer is that they consider the benefit to be worth the 7.65%. Actually, since the 7.65% comes out pre-tax for both employer and employee, it would cost the employer considerably more to replace the benefit with cash, and it seems likely that the benefit would be reduced as a compromise.
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