H.R.3271 - Medicare and Social Security Fair Share Act (119th Congress)
Summary
H.R.3271, the Medicare and Social Security Fair Share Act, proposes amendments to the Internal Revenue Code of 1986 to increase funding for Social Security and Medicare. The bill introduces modifications to payroll taxes, taxes on self-employment income, and taxes on unearned income, specifically targeting high-income individuals. It aims to bolster the financial stability of Social Security and Medicare by increasing the tax burden on higher earners.
Expected Effects
The bill would increase taxes on wages above the Social Security contribution and benefit base, impose further additional hospital insurance tax on very high-income taxpayers, and modify taxes on net investment income. Revenue generated from these tax increases would be allocated to the Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund, and the Federal Hospital Insurance Trust Fund.
Potential Benefits
- Increased funding for Social Security and Medicare, potentially extending the solvency of these programs.
- Reduced financial burden on lower and middle-income individuals by shifting more of the tax burden to higher earners.
- Improved access to healthcare services through a more financially stable Medicare system.
- Enhanced retirement security for current and future retirees.
- Potential for increased economic stability due to stronger social safety nets.
Potential Disadvantages
- Increased tax burden on high-income earners, potentially disincentivizing investment and job creation.
- Complexity in tax code due to the introduction of new tax brackets and calculations.
- Potential for tax avoidance strategies by high-income individuals to minimize their tax liability.
- Possible negative impact on business investment if higher taxes reduce available capital.
- May face political opposition due to its redistributive nature.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the Constitution's mandate to "promote the general Welfare" (Preamble) by aiming to strengthen Social Security and Medicare. The power to levy taxes is granted to Congress under Article I, Section 8, Clause 1. The bill's provisions appear to be within the scope of Congress's taxing and spending powers, as long as the taxes are applied uniformly across the states.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).