S.1690 - Medicare and Social Security Fair Share Act (119th Congress)
Summary
The Medicare and Social Security Fair Share Act aims to bolster funding for Social Security and Medicare by modifying payroll and self-employment taxes, and taxes on unearned income. It increases the wage base subject to Social Security taxes, introduces a further additional hospital insurance tax on high-income taxpayers, and modifies taxes on self-employment income. The bill also adjusts the tax on net investment income for high-income individuals and allocates a portion of these revenues to the Old-Age and Survivors, Disability Insurance, and Federal Hospital Insurance Trust Funds.
Expected Effects
The Act would increase taxes on high-income earners to provide additional funding for Social Security and Medicare. This could lead to enhanced financial stability for these programs, potentially extending their solvency. The changes to tax laws could also influence investment and employment decisions among affected taxpayers.
Potential Benefits
- Increased funding for Social Security and Medicare, potentially improving benefits and solvency.
- Reduced financial strain on future generations by ensuring the long-term viability of these programs.
- Greater equity in the tax system by increasing contributions from high-income earners.
- Improved access to healthcare services through a more robust Medicare system.
- Enhanced financial security for retirees and disabled individuals.
Potential Disadvantages
- Higher taxes on high-income earners, potentially discouraging investment and economic activity.
- Increased complexity in the tax code due to the introduction of new tax brackets and calculations.
- Potential for tax avoidance strategies by high-income earners to minimize their tax burden.
- Possible negative impact on business owners and self-employed individuals due to increased self-employment taxes.
- Risk of unintended consequences from altering the tax structure, such as reduced charitable giving.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's alignment with the Constitution is primarily based on the power of Congress to lay and collect taxes, duties, imposts, and excises to pay the debts and provide for the common defense and general welfare of the United States (Article I, Section 8, Clause 1). The Sixteenth Amendment grants Congress the power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several states, and without regard to any census or enumeration. The bill appears to fall within these constitutional powers.
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).