Research Report The Direct Impact of Medicare Spending on Employment and Tax Revenue
Richard W. Johnson, Erald Kolasi
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In addition to financing crucial health care services for millions of Americans, Medicare benefits the broader economy. The funds disbursed by the program support the employment of millions of workers, and the salaries paid to those workers generate billions of dollars of tax revenue. We estimate that Medicare directly financed 3.7 million jobs in the health care sector in 2019, accounting for 22 percent of all health care sector employment. The program also generated $71.0 billion in federal tax revenues, including $29.3 billion in Social Security and Medicare payroll taxes, and another $10.4 billion in state tax revenue.

Research Areas Health and health care Wealth and financial well-being Aging and retirement Taxes and budgets
Tags Employment and income data Medicare Health insurance State and local tax issues Federal budget and economy Retirement policy Federal tax issues and reform proposals
Policy Centers Income and Benefits Policy Center