Medicare and Social Security Fair Share Act

Today's wording of each part of the law, with what would be struck out and added. Each change also gives the bill's own instruction, word for word.

1. 26 U.S.C. 3121(a)rewrittenby H.R. 3271 Sec. 2(a)

   The bill says: Paragraph (1) of section 3121(a) of the Internal Revenue Code of 1986 is amended to read as follows:

   Bill text · Current law (26 U.S.C. 3121)

2. 26 U.S.C. 3121added (aa)by H.R. 3271 Sec. 2(a)

   (aa) Special rules for successor employers.— For purposes of subsection (a)(1), if an employer (hereinafter referred to as successor employer) during any calendar year acquires substantially all the property used in a trade or business of another employer (hereinafter referred to as a predecessor), or used in a separate unit of a trade or business of a predecessor, and immediately after the acquisition employs in his trade or business an individual who immediately prior to the acquisition was employed in the trade or business of such predecessor, then, for the purpose of determining the amount of remuneration paid by the successor employer under such subsection, any remuneration (other than remuneration referred to in the paragraphs succeeding paragraph (1) of subsection (a)) with respect to employment paid (or considered under this subsection as having been paid) to such individual by such predecessor during such calendar year and prior to such acquisition shall be considered as having been paid by such successor employer.

   The bill says: Section 3121 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

   Bill text · Current law (26 U.S.C. 3121)

3. 26 U.S.C. 3101(b)added (3)by H.R. 3271 Sec. 2(b)

   (3) Further additional tax.— In addition to the tax imposed by paragraphs (1) and (2) and the preceding subsection, there is hereby imposed on every taxpayer (other than a corporation, estate, or trust) a tax equal to 1.2 percent of wages which are received with respect to employment (as defined in section 3121(b)) during the taxable year which are in excess of—(A) in the case of a joint return, $500,000,(B) in the case of a married taxpayer (as defined in section 7703) filing a separate return, ½ of the dollar amount determined under subparagraph (A), and(C) in any other case, $400,000.

   The bill says: Section 3101(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

   Bill text · Current law (26 U.S.C. 3101)

4. 26 U.S.C. 1402(b)rewrittenby H.R. 3271 Sec. 3(a)

   (1) in the case of the tax imposed by section 1401(a) for any taxable year beginning in a calendar year in which the contribution and benefit base (as determined under section 230 of the Social Security Act) is less than $400,000, the excess (if any) of—(A) so much of the net earnings from self-employment which is in excess of—(i) an amount equal to the contribution and benefit base (as determined under section 230 of the Social Security Act) which is effective for the calendar year in which such taxable year begins, reduced (but not below zero) by(ii) the amount of the wages paid to such individual during such taxable year, over(B) the sum of—(i) the excess (if any) of—(I) the net earnings from self-employment reduced by the excess (if any) of subparagraph (A)(i) over subparagraph (A)(ii), over(II) $400,000, reduced by such contribution and benefit base, plus(ii) the amount of the wages paid to such individual during such taxable year in excess of such contribution and benefit base and not in excess of $400,000; or

   The bill says: Paragraph (1) of section 1402(b) of the Internal Revenue Code of 1986 is amended to read as follows:

   Bill text · Current law (26 U.S.C. 1402)

5. 26 U.S.C. 1401(b)added (3)by H.R. 3271 Sec. 3(b)

   (3) Further additional tax.—(A) In general.— In addition to the tax imposed by paragraphs (1) and (2) and the preceding subsection, there is hereby imposed on every taxpayer (other than a corporation, estate, or trust) for each taxable year a tax equal to 1.2 percent of the self-employment income for such taxable year which is in excess of—(i) in the case of a joint return, $500,000,(ii) in the case of a married taxpayer (as defined in section 7703) filing a separate return, ½ of the dollar amount determined under subparagraph (A), and(iii) in any other case, $400,000.(B) Coordination with FICA.— The amounts under clause (i), (ii), or (iii) (whichever is applicable) of subparagraph (A) shall be reduced (but not below zero) by the amount of wages taken into account in determining the tax imposed under section 3101(b)(3) with respect to the taxpayer.

   The bill says: Section 1401(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

   Bill text · Current law (26 U.S.C. 1401)

6. 26 U.S.C. 1411added (f)by H.R. 3271 Sec. 4(a)

   (f) Additional amount for certain high income individuals.—(1) Inclusion of specified net income.—(A) In general.— In the case of any individual whose modified adjusted gross income for the taxable year exceeds the high income threshold amount, subsection (a)(1) shall be applied by substituting "the greater of specified net income or net investment income" for "net investment income" in subparagraph (A) thereof.(B) Phase-in of increase.— The increase in the tax imposed under subsection (a)(1) by reason of the application of subparagraph (A) (determined before application of paragraph (2)) shall not exceed the amount which bears the same ratio to the amount of such increase (determined without regard to this paragraph) as—(i) the excess described in subparagraph (A), bears to(ii) $100,000 (1/2 such amount in the case of a married taxpayer (as defined in section 7703) filing a separate return).(2) Additional rate bracket.— In the case of any individual whose modified adjusted gross income for the taxable year exceeds the high income threshold amount, the amount of tax imposed under subsection (a)(1) shall be increased by an amount equal to 13.6 percent of the lesser of—(A) the greater of the specified net income or net investment income for the taxable year, or(B) the excess (if any) of—(i) the modified adjusted gross income for such taxable year, over(ii) the high income threshold amount.(3) Definitions.—(A) High income threshold amount.— For purposes of this subsection, the term "high income threshold amount" means—(i) except as provided in clause (ii) or (iii), $400,000,(ii) in the case of a taxpayer making a joint return under section 6013 or a surviving spouse (as defined in section 2(a)), $500,000, and(iii) in the case of a married taxpayer (as defined in section 7703) filing a separate return, 1/2 of the dollar amount determined under clause (ii).(B) Specified net income.— For purposes of this section, the term specified net income means net investment income determined—(i) without regard to the phrase "other than such income which is derived in the ordinary course of a trade or business not described in paragraph (2)," in subsection (c)(1)(A)(i),(ii) without regard to the phrase "described in paragraph (2)" in subsection (c)(1)(A)(ii),(iii) without regard to the phrase "other than property held in a trade or business not described in paragraph (2)" in subsection (c)(1)(A)(iii),(iv) without regard to paragraphs (2), (3), and (4) of subsection (c), and(v) by treating paragraphs (5) and (6) of section 469(c) (determined without regard to the phrase "To the extent provided in regulations," in such paragraph (6)) as applying for purposes of subsection (c) of this section.

   The bill says: Section 1411 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

   Bill text · Current law (26 U.S.C. 1411)

7. 26 U.S.C. 1411(a)(2)changedby H.R. 3271 Sec. 4(b)

   (2) Application to estates and trusts. In the case of an estate or trust, there is hereby imposed (in addition to any other tax imposed by this subtitle) for each taxable year a tax of 3.8 percent17.4 percent of the lesser of— (A) the undistributed net investment income for such taxable year, or (B) the excess (if any) of— (i) the adjusted gross income (as defined in section 67(e)) for such taxable year, over (ii) the dollar amount at which the highest tax bracket in section 1(e) begins for such taxable year.

   The bill says: by striking "3.8 percent" and inserting "17.4 percent", and

   Bill text · Current law (26 U.S.C. 1411)

8. 26 U.S.C. 1411(a)(2)(A)changedby H.R. 3271 Sec. 4(b)

   (A) the undistributed net investment incomethe greater of undistributed specified net income or undistributed net investment income for such taxable year, or

   The bill says: in subparagraph (A) thereof, by striking "undistributed net investment income" and inserting "the greater of undistributed specified net income or undistributed net investment income".

   Bill text · Current law (26 U.S.C. 1411)

9. 26 U.S.C. 1411(c)(6)rewrittenby H.R. 3271 Sec. 4(c)

   (6) Special rules.— Net investment income shall not include—(A) any item taken into account in determining self-employment income for such taxable year on which a tax is imposed by section 1401(b),(B) wages received with respect to employment on which a tax is imposed under section 3101(b) (determined without regard to section 3101(c)) or 3201(a) (including amounts taken into account under section 3121(v)(2)), and(C) wages received from the performance of services earned outside the United States for a foreign employer.

   The bill says: Section 1411(c)(6) of the Internal Revenue Code of 1986 is amended to read as follows:

   Bill text · Current law (26 U.S.C. 1411)

10. 42 U.S.C. 401(a)changedby H.R. 3271 Sec. 4(d)

    …appropriated to the Federal Old-Age and Survivors Insurance Trust Fund for the fiscal year ending June 30, 1941, and for each fiscal year thereafter, out of any moneys in the Treasury not otherwise appropriated, amounts equivalent to 100 per centum of— (1) the taxes (including interest, penalties, and additions to the taxes) received under subchapter A of chapter 9 of the Internal Revenue Code of 1939 (and covered into the Treasury) which are deposited into the Treasury by collectors…

    The bill says: by striking "100 per centum of",

    Bill text · Current law (42 U.S.C. 401)

11. 42 U.S.C. 401(a)changedby H.R. 3271 Sec. 4(d)

    …Federal Old-Age and Survivors Insurance Trust Fund for the fiscal year ending June 30, 1941, and for each fiscal year thereafter, out of any moneys in the Treasury not otherwise appropriated, amounts equivalent to 100 per centum of— (1) 100 percent of the taxes (including interest, penalties, and additions to the taxes) received under subchapter A of chapter 9 of the Internal Revenue Code of 1939 (and covered into the Treasury) which are deposited into the Treasury by collectors of…

    The bill says: by inserting "100 percent of" before "the taxes" each place it appears in paragraphs (1), (2), (3), and (4), and

    Bill text · Current law (42 U.S.C. 401)

12. 42 U.S.C. 401(a)added (5)by H.R. 3271 Sec. 4(d)

    …Security on the basis of the records of self-employment income established and maintained by the Commissioner of Social Security in accordance with such returns, less the amounts specified in clause (2) of subsection (b) of this section.(5) 71.3 percent of the taxes imposed by section 1411 of the Internal Revenue Code of 1986 for any taxable year beginning after December 31, 2025, as determined by the Secretary of the Treasury or the Secretary's delegate based on tax returns under subtitle F of such Code, less the amounts specified in paragraph (3) of subsection (b).

    The bill says: by striking "and" at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting "; and", and by inserting after paragraph (4) the following new paragraph:

    Bill text · Current law (42 U.S.C. 401)

13. 42 U.S.C. 401(a)changedby H.R. 3271 Sec. 4(d)

    The bill says: The fourth sentence of section 201(a) of such Act (42 U.S.C. 401(a)) is amended by striking "clauses (3) and (4)" each place it appears and inserting "paragraphs (3), (4), and (5)".

    Bill text · Current law (42 U.S.C. 401)

14. 42 U.S.C. 401(b)changedby H.R. 3271 Sec. 4(d)

    …There is hereby appropriated to the Federal Disability Insurance Trust Fund for the fiscal year ending June 30, 1957, and for each fiscal year thereafter, out of any moneys in the Treasury not otherwise appropriated, amounts equivalent to 100 per centum of— (1)(A) ½ of 1 per centum of the wages (as defined in section 3121 of the Internal Revenue Code of 1954) paid after December 31, 1956, and before January 1, 1966, and reported to the Secretary of the Treasury or his delegate pursuant to…

    The bill says: by striking "100 per centum of", and

    Bill text · Current law (42 U.S.C. 401)

15. 42 U.S.C. 401(b)added (3)by H.R. 3271 Sec. 4(d)

    …which self-employment income shall be certified by the Commissioner of Social Security on the basis of the records of self-employment income established and maintained by the Commissioner of Social Security in accordance with such returns.(3) 10.3 percent of the taxes imposed by section 1411 of the Internal Revenue Code of 1986 for any taxable year beginning after December 31, 2025, as determined by the Secretary of the Treasury or the Secretary's delegate based on tax returns under subtitle F of such Code.

    The bill says: by striking "and" at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting "; and", and by inserting after paragraph (2) the following new paragraph:

    Bill text · Current law (42 U.S.C. 401)

16. 42 U.S.C. 1395i(a)changedby H.R. 3271 Sec. 4(d)

    …as provided in this part. There are hereby appropriated to the Trust Fund for the fiscal year ending June 30, 1966, and for each fiscal year thereafter, out of any moneys in the Treasury not otherwise appropriated, amounts equivalent to 100 per centum of— (1) the taxes imposed by sections 3101(b) and 3111(b) of the Internal Revenue Code of 1986 with respect to wages reported to the Secretary of the Treasury or his delegate pursuant to subtitle F of such Code after December 31, 1965, as…

    The bill says: by striking "100 per centum of",

    Bill text · Current law (42 U.S.C. 1395i)

17. 42 U.S.C. 1395i(a)changedby H.R. 3271 Sec. 4(d)

    …There are hereby appropriated to the Trust Fund for the fiscal year ending June 30, 1966, and for each fiscal year thereafter, out of any moneys in the Treasury not otherwise appropriated, amounts equivalent to 100 per centum of— (1) 100 percent of the taxes imposed by sections 3101(b) and 3111(b) of the Internal Revenue Code of 1986 with respect to wages reported to the Secretary of the Treasury or his delegate pursuant to subtitle F of such Code after December 31, 1965, as…

    The bill says: by inserting "100 percent of" before "the taxes" each place it appears in paragraphs (1) and (2), and

    Bill text · Current law (42 U.S.C. 1395i)

18. 42 U.S.C. 1395i(a)added (3)by H.R. 3271 Sec. 4(d)

    …income, which self-employment income shall be certified by the Commissioner of Social Security on the basis of records of self-employment established and maintained by the Commissioner of Social Security in accordance with such returns.(3) 28.7 percent of the taxes imposed by section 1411 of the Internal Revenue Code of 1986 for any taxable year beginning after December 31, 2025, as determined by the Secretary of the Treasury or the Secretary's delegate based on tax returns under subtitle F of such Code.

    The bill says: by striking "and" at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting "; and", and by inserting after paragraph (2) the following new paragraph:

    Bill text · Current law (42 U.S.C. 1395i)

From the bill's official text on GovInfo and the U.S. Code, 2024 edition, which may not yet show changes made since.