What does Preamble of Medicare and Social Security Fair Share Act do?

This bill proposes to amend the Internal Revenue Code of 1986. The stated purpose of the bill is to increase funding for Social Security and Medicare.

What does SHORT TITLE. of Medicare and Social Security Fair Share Act do?

This bill is formally titled the Medicare and Social Security Fair Share Act.

What does MODIFICATION OF PAYROLL TAXES. of Medicare and Social Security Fair Share Act do?

This section modifies payroll taxes related to Social Security and hospital insurance. It amends section 3121(a) of the Internal Revenue Code of 1986 to adjust the wage base for taxes funding Social Security, setting a threshold of $400,000. It introduces special rules for successor employers regarding the determination of remuneration paid under the amended section 3121(a). It amends clause (i) of section 3231(e)(2)(A) of the Internal Revenue Code of 1986, applying similar wage base adjustments to railroad retirement taxes. It imposes an additional 1.2 percent tax on wages exceeding $400,000 (or $500,000 for joint returns, and $200,000 for married taxpayers filing separately) for taxpayers other than corporations, estates, or trusts. It establishes special rules for collecting the additional tax, including employer responsibilities and employee liability for unpaid amounts. The amendments apply to remuneration paid and taxable years beginning on or after January 1 of the first calendar year following the Act's enactment.

What does MODIFICATION OF TAXES ON SELF-EMPLOYMENT INCOME. of Medicare and Social Security Fair Share Act do?

This section modifies the tax on net earnings from self-employment. It amends section 1402(b) of the Internal Revenue Code of 1986 to adjust the calculation of the tax based on the contribution and benefit base and a threshold of $400,000. It adds a new paragraph (3) to section 1401(b) of the Internal Revenue Code of 1986, imposing an additional 1.2 percent tax on self-employment income exceeding certain thresholds ($500,000 for joint returns, $250,000 for separate returns, and $400,000 for other cases). It amends section 164(f) and section 1402(a)(12)(B) of the Internal Revenue Code of 1986 to reflect the new tax. It makes a technical amendment to section 1401(b)(2)(B) of the Internal Revenue Code of 1986. The amendments apply to net earnings from self-employment derived, and taxable years beginning, on or after January 1 of the first calendar year that begins after the date of enactment of this Act.

What does TAXES ON UNEARNED INCOME. of Medicare and Social Security Fair Share Act do?

This section modifies the tax on net investment income as outlined in Section 1411 of the Internal Revenue Code of 1986. For individuals exceeding a 'high income threshold amount,' the application of subsection (a)(1) is modified to consider the 'greater of specified net income or net investment income'. The 'high income threshold amount' is $400,000 for most taxpayers, $500,000 for those filing jointly or as surviving spouses, and $250,000 for married taxpayers filing separately. A new 13.6 percent tax is imposed on the lesser of specified net income or the excess of modified adjusted gross income over the high income threshold amount for high-income individuals. Section 1411(a)(2) is amended to increase the tax rate to 17.4 percent for trusts and estates, and to consider the 'greater of undistributed specified net income or undistributed net investment income'. Certain exceptions are made to net investment income, including self-employment income, wages, and foreign income. Taxes imposed under Section 1411 of the Internal Revenue Code of 1986 will be transferred to the Old-Age and Survivors, Disability Insurance, and Federal Hospital Insurance Trust Funds. The amendments made by this section apply to taxable years beginning after December 31, 2025.

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Medicare and Social Security Fair Share Act

Last updated: 5/8/2025 · Introduced: 5/8/2025

Author: Brendan Boyle (D-PA)

TL;DR (AI)

This bill adjusts payroll taxes by setting a $400,000 wage base for Social Security and imposing an additional 1.2% tax on earnings exceeding that amount for most taxpayers.
Self-employment income will also be subject to an additional 1.2% tax on amounts exceeding specified thresholds, mirroring the adjustments made to payroll taxes.
High-income individuals will face a new 13.6% to 17.4% tax on net investment income exceeding a specified threshold, with the revenue directed to Social Security and Medicare trust funds.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 3 more.

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