The Medicare and Social Security Fair Share Act raises payroll and investment taxes on high-income earners to shore up Social Security and Medicare funding. The bill eliminates the current Social Security payroll tax cap, imposes a new 1.2% payroll tax on wages above $400,000–$500,000 (depending on filing status), and adds a 13.6% tax on investment income for high-income individuals and certain foreign corporate earnings starting in 2026. These changes affect employees, self-employed individuals, and employers earning above $400,000 annually. The new revenue is directed to the Social Security trust funds (71.3% to the Old-Age and Survivors Fund and 10.3% to the Disability Insurance Fund) and Medicare's Hospital Insurance Trust Fund (28.7%), with the Treasury Secretary responsible for calculating and allocating the amounts.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.