Medicare and Social Security Fair Share Act

This bill would increase the Social Security tax wage base to $400,000, meaning income above this threshold would no longer be subject to Social Security tax. It would also impose a new 1.2% tax on wages exceeding $400,000 (with $500,000 for joint returns and $250,000 for married filing separately), and modify the net investment income tax to include a 13.6% additional tax on income above these thresholds. The bill would direct 71.3% of these new taxes to the Old-Age and Survivors Insurance Trust Fund, 10.3% to the Disability Insurance Trust Fund, and 28.7% to the Hospital Insurance Trust Fund. These changes would apply to taxable years beginning after December 31, 2025.