Medicare and Social Security Fair Share Act
HB3271, titled the Medicare and Social Security Fair Share Act, would raise additional federal payroll and investment-income taxes on high-income taxpayers to increase funding for Social Security and Medicare. The bill increases the Social Security wage base for payroll taxes so that earnings above the current contribution and benefit base would remain subject to tax up to $400,000, and it adds a new 1.2 percent surtax on wages and self-employment income above $400,000 for most filers and $500,000 for joint filers. It also makes conforming changes for successor employers and railroad retirement taxes.
The bill further expands the Medicare-related tax burden on very high earners by increasing the tax on net investment income for certain high-income individuals, trusts, and estates, including a higher rate and broader income base for those above the threshold. It also revises what counts as net investment income, adds foreign income items into the tax base, and directs specified portions of the new revenue to the Social Security Old-Age and Survivors Insurance Trust Fund, Disability Insurance Trust Fund, and the Medicare Hospital Insurance Trust Fund beginning after December 31, 2025.
If enacted, the bill would amend multiple provisions of the Internal Revenue Code and the Social Security Act, primarily sections governing FICA, self-employment tax, and the net investment income tax. It would expand the earnings subject to Social Security payroll taxation, impose new surtaxes on high wages and self-employment income, and substantially increase taxes on high-income investment income and certain trust and estate income. The measure would also change how revenue is allocated among the Social Security and Medicare trust funds, affecting funding flows for those programs and the taxpayers most likely to be affected: high earners, self-employed individuals, employers, and certain trusts and estates.
Based on the bill text and the limited procedural history, the measure appears to be framed as a revenue-raising and program-funding proposal rather than a benefit-cutting or entitlement-restructuring bill. The title and structure suggest support from lawmakers who favor requiring higher-income taxpayers to contribute more toward Social Security and Medicare. There are no committee transcripts or recorded votes provided, so no direct evidence of broader bipartisan support or opposition is available from the supplied materials.
The main point of contention is likely the bill’s tax increases on high-income individuals, employers, self-employed workers, and certain trusts and estates. Critics would likely focus on the higher payroll-tax burden above $400,000, the new 1.2 percent surtax, and the expanded investment-income tax, arguing that these changes could discourage investment, reduce take-home pay, or increase compliance complexity. Supporters would likely emphasize that the bill targets only very high earners and is designed to strengthen long-term financing for Social Security and Medicare. No specific objections or amendments are reflected in the provided committee record.