Bill > S1690

This bill, named the "Medicare and Social Security Fair Share Act," proposes several significant changes to payroll and investment taxes to increase funding for Social Security and Medicare. The bill would raise the wage base for Social Security taxes to $400,000, meaning that earnings above this threshold would be subject to additional taxation. It introduces a new 1.2% additional hospital insurance tax on high-income taxpayers, applying to individuals with wages or self-employment income exceeding $400,000 for single filers and $500,000 for joint filers. The bill also modifies the Net Investment Income Tax (NIIT) by expanding the definition of taxable investment income and increasing the tax rate for high-income earners, with a new 13.6% tax bracket for those above the income thresholds. Additionally, the legislation specifies how the new tax revenues will be distributed among the Old-Age and Survivors Insurance Trust Fund (71.3%), the Disability Insurance Trust Fund (10.3%), and the Hospital Insurance Trust Fund (28.7%), with these changes set to take effect for taxable years beginning after December 31, 2025. The primary goal of these modifications is to generate more sustainable funding for Social Security and Medicare programs by targeting higher-income taxpayers.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1690/all-info