The Medicare and Social Security Fair Share Act increases payroll and investment income taxes on higher earners to boost funding for Social Security and Medicare. The bill raises the wage cap for Social Security payroll taxes from the current level to $400,000, imposing an additional 1.2 percent Medicare tax on wages above $400,000 (or $500,000 for joint filers) and a similar tax on self-employment income above those thresholds. Additionally, the bill adds a 13.6 percent tax on investment income for high earners—those making more than $400,000 (or $500,000 for joint filers)—and increases the investment income tax rate for trusts and estates from 3.8 percent to 17.4 percent. The new revenues from these tax increases are allocated to Social Security's Old-Age and Survivors Insurance Trust Fund, the Disability Insurance Trust Fund, and Medicare's Hospital Insurance Trust Fund. All changes take effect beginning January 1 of the first calendar year after the bill becomes law.
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.