Bill > HR3271

This bill, known as the "Medicare and Social Security Fair Share Act," proposes several key modifications to the Internal Revenue Code to increase funding for Social Security and Medicare by implementing new tax provisions on high-income earners. The bill raises the wage base for Social Security taxes to $400,000 and introduces a new 1.2% additional Hospital Insurance Tax for individuals with income exceeding $400,000 (or $500,000 for joint filers). It also modifies taxes on self-employment income and net investment income, creating new tax brackets and rates for high-income taxpayers. The bill specifically targets various income types, including wages, self-employment earnings, and investment income, by implementing progressive tax increases that apply to income above specified thresholds. Additionally, the legislation includes provisions for transferring a percentage of these new tax revenues to the Old-Age and Survivors, Disability Insurance, and Federal Hospital Insurance Trust Funds, with these changes set to take effect for taxable years beginning after December 31, 2025. The goal of these changes is to generate additional funding to support and potentially strengthen Social Security and Medicare programs by requiring higher-income individuals to contribute a larger share of their earnings.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/3271/all-info