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Increased Payroll and Investment Taxes for High Earners to Fund Social Security and Medicare

This Act aims to boost funding for Social Security and Medicare by imposing additional contributions on very high-income individuals and businesses. Citizens earning below $400,000 annually will not see changes in their Social Security contributions, but those above this threshold will pay more. It introduces an extra Hospital Insurance (Medicare) tax and higher taxation on investment income for the wealthiest.
Key points
Reinstatement of Social Security payroll taxes on wages exceeding $400,000 annually.
Introduction of an additional 1.2% Hospital Insurance (Medicare) tax on wages and self-employment income above $400,000 (single filers) or $500,000 (joint filers).
Significant increase in the Net Investment Income Tax (NIIT) for individuals with income above $400,000 (or $500,000 for joint filers), including a new 17.4% rate specified for trusts and estates.
Expansion of the investment income tax base to include certain business income and foreign income.
Payroll tax changes take effect on January 1st following enactment, while investment tax modifications apply to taxable years beginning after December 31, 2023.
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Expired
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Additional Information
Print number: 118_S_1174
Sponsor: Sen. Whitehouse, Sheldon [D-RI]
Process start date: 2023-04-18
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Medicare and Social Security Fair Share Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_1174.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-04-18.

What are the main provisions?

Key points include:

  • Reinstatement of Social Security payroll taxes on wages exceeding $400,000 annually.
  • Introduction of an additional 1.2% Hospital Insurance (Medicare) tax on wages and self-employment income above $400,000 (single filers) or $500,000 (joint filers).
  • Significant increase in the Net Investment Income Tax (NIIT) for individuals with income above $400,000 (or $500,000 for joint filers), including a new 17.4% rate specified for trusts and estates.
  • Expansion of the investment income tax base to include certain business income and foreign income.
  • Payroll tax changes take effect on January 1st following enactment, while investment tax modifications apply to taxable years beginning after December 31, 2023.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Whitehouse, Sheldon [D-RI].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-30.

CATEGORIES

Taxes Benefits Economy