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Increased Medicare and Social Security Contributions for High Earners

This act aims to boost funding for Social Security and Medicare by changing how contributions are calculated. It primarily affects very high-income individuals, who will pay more taxes on wages, self-employment income, and investment income. The goal is to strengthen the financial stability of these crucial benefit programs.
Key points
Individuals earning over $400,000 annually (or $500,000 for joint filers) will pay Social Security contributions on their entire earnings, not just up to the current limit.
An additional 1.2% hospital insurance (Medicare) tax will be introduced for very high-income earners (above $400,000 for singles, $500,000 for joint filers).
Taxes on investment income for high-income individuals will increase, with a portion of these revenues directed to Social Security and Medicare trust funds.
The changes will take effect on January 1 of the first calendar year following the act's enactment.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_1690
Sponsor: Sen. Whitehouse, Sheldon [D-RI]
Process start date: 2025-05-08
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash
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 119_S_1690.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-05-08.

What are the main provisions?

Key points include:

  • Individuals earning over $400,000 annually (or $500,000 for joint filers) will pay Social Security contributions on their entire earnings, not just up to the current limit.
  • An additional 1.2% hospital insurance (Medicare) tax will be introduced for very high-income earners (above $400,000 for singles, $500,000 for joint filers).
  • Taxes on investment income for high-income individuals will increase, with a portion of these revenues directed to Social Security and Medicare trust funds.
  • The changes will take effect on January 1 of the first calendar year following the act's enactment.
What is the specific legal status?

The current status is Introduced.

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 2025-12-23.

CATEGORIES

Taxes Benefits Economy