Medicare and Social Security Fair Share Act

Medicare and Social Security Fair Share Act

This bill increases funding for the Social Security and Medicare trust funds by extending the payroll tax on wages, self-employment income, and investment income to taxpayers with earnings exceeding $400,000.

The bill also applies a payroll tax on the pass-through business income of taxpayers earning more than $400,000 (thus eliminating the classification of earned income as distributed business profits).

Bill 118 hr 4535, also known as the Medicare and Social Security Fair Share Act, is a piece of legislation currently being considered by the US Congress. The main goal of this bill is to address the financial challenges facing the Medicare and Social Security programs by increasing revenue through changes to the tax code.

Specifically, the bill proposes to increase the amount of income subject to the Social Security payroll tax. Currently, individuals only pay Social Security taxes on the first $142,800 of their income. This bill would raise that threshold to $400,000, meaning that individuals earning more than $400,000 would pay Social Security taxes on all of their income.

Additionally, the bill would also increase the Medicare payroll tax rate for high-income earners. Currently, individuals pay a 2.9% Medicare tax on all of their income. This bill would increase that rate to 3.8% for individuals earning over $400,000. Overall, the Medicare and Social Security Fair Share Act aims to ensure the long-term solvency of these important social programs by increasing revenue from high-income earners. Proponents of the bill argue that this is a fair and necessary step to protect the future of Medicare and Social Security, while opponents may argue that it unfairly targets high-income individuals.