II 

118TH CONGRESS 

1ST SESSION S. 1174 

To amend the Internal Revenue Code of 1986 to increase funding for Social 

Security and Medicare. 

IN THE SENATE OF THE UNITED STATES 

APRIL 18, 2023 

Mr. WHITEHOUSE introduced the following bill; which was read twice and 

referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to increase 

funding for Social Security and Medicare. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Medicare and Social 

5 Security Fair Share Act’’. 

6 SEC. 2. MODIFICATION OF PAYROLL TAXES. 

7 (a) WAGE BASE FOR TAXES FUNDING SOCIAL SECU8 RITY.— 


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•S 1174 IS

1 (1) IN GENERAL.—Paragraph (1) of section 

2 3121(a) of the Internal Revenue Code of 1986 is 

3 amended to read as follows: 

4 ‘‘(1) in the case of taxes imposed by sections 

5 3101(a) and 3111(a), for any calendar year in which 

6 the contribution and benefit base (as determined 

7 under section 230 of the Social Security Act) is less 

8 than $400,000, so much of the remuneration (other 

9 than remuneration referred to in the succeeding 

10 paragraphs of this subsection) with respect to em11 ployment that has been paid to an individual by an 

12 employer during the calendar year as exceeds such 

13 contribution and benefit base but does not exceed 

14 $400,000;’’. 

15 (2) CONFORMING AMENDMENTS.— 

16 (A) SUCCESSOR EMPLOYERS.—Section 

17 3121 of the Internal Revenue Code of 1986 is 

18 amended by adding at the end the following 

19 new subsection: 

20 ‘‘(aa) SPECIAL RULES FOR SUCCESSOR EMPLOY21 ERS.—For purposes of subsection (a)(1), if an employer 

22 (hereinafter referred to as successor employer) during any 

23 calendar year acquires substantially all the property used 

24 in a trade or business of another employer (hereinafter 

25 referred to as a predecessor), or used in a separate unit 


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1 of a trade or business of a predecessor, and immediately 

2 after the acquisition employs in his trade or business an 

3 individual who immediately prior to the acquisition was 

4 employed in the trade or business of such predecessor, 

5 then, for the purpose of determining the amount of remu6 neration paid by the successor employer under such sub7 section, any remuneration (other than remuneration re8 ferred to in the paragraphs succeeding paragraph (1) of 

9 subsection (a)) with respect to employment paid (or con10 sidered under this subsection as having been paid) to such 

11 individual by such predecessor during such calendar year 

12 and prior to such acquisition shall be considered as having 

13 been paid by such successor employer.’’. 

14 (B) APPLICATION TO RAILROAD RETIRE15 MENT TAXES.—Clause (i) of section 

16 3231(e)(2)(A) of such Code is amended to read 

17 as follows: 

18 ‘‘(i) IN GENERAL.—For any calendar 

19 year in which the applicable base is less 

20 than $400,000, the term ‘compensation’ 

21 does not include so much of the remunera22 tion paid during any calendar year to an 

23 individual by an employer for services ren24 dered as an employee to such employer as 


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1 exceeds the applicable base but does not 

2 exceed $400,000.’’. 

3 (b) FURTHER ADDITIONAL HOSPITAL INSURANCE

4 TAX ON VERY HIGH INCOME TAXPAYERS.— 

5 (1) IN GENERAL.—Section 3101(b) of the In6 ternal Revenue Code of 1986 is amended by adding 

7 at the end the following new paragraph: 

8 ‘‘(3) FURTHER ADDITIONAL TAX.—In addition 

9 to the tax imposed by paragraphs (1) and (2) and 

10 the preceding subsection, there is hereby imposed on 

11 every taxpayer (other than a corporation, estate, or 

12 trust) a tax equal to 1.2 percent of wages which are 

13 received with respect to employment (as defined in 

14 section 3121(b)) during the taxable year which are 

15 in excess of— 

16 ‘‘(A) in the case of a joint return, 

17 $500,000, 

18 ‘‘(B) in the case of a married taxpayer (as 

19 defined in section 7703) filing a separate return, 1 20 ⁄2 of the dollar amount determined under 

21 subparagraph (A), and 

22 ‘‘(C) in any other case, $400,000.’’. 

23 (2) COLLECTION OF TAX.—Section 3102 of 

24 such Code is amended by adding at the end the fol25 lowing new subsection: 


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1 ‘‘(g) SPECIAL RULES FOR FURTHER ADDITIONAL

2 TAX.— 

3 ‘‘(1) IN GENERAL.—In the case of any tax im4 posed by section 3101(b)(3), subsection (a) shall 

5 only apply to the extent to which the taxpayer re6 ceives wages from the employer in excess of 

7 $400,000, and the employer may disregard the 

8 amount of wages received by such taxpayer’s spouse. 

9 ‘‘(2) COLLECTION OF AMOUNTS NOT WITH10 HELD.—To the extent that the amount of any tax 

11 imposed by section 3101(b)(3) is not collected by the 

12 employer, such tax shall be paid by the employee. 

13 ‘‘(3) TAX PAID BY RECIPIENT.—If an employer, 

14 in violation of this chapter, fails to deduct and with15 hold the tax imposed by section 3101(b)(3) and 

16 thereafter the tax is paid by the employee, the tax 

17 so required to be deducted and withheld shall not be 

18 collected from the employer, but this paragraph shall 

19 in no case relieve the employer from liability for any 

20 penalties or additions to tax otherwise applicable in 

21 respect of such failure to deduct and withhold.’’. 

22 (c) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to remuneration paid, and taxable 

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•S 1174 IS

1 endar year that begins after the date of enactment of this 

2 Act. 

3 SEC. 3. MODIFICATION OF TAXES ON SELF-EMPLOYMENT 

4 INCOME. 

5 (a) TAX ON NET EARNINGS FROM SELF-EMPLOY6 MENT UP TO CONTRIBUTION AND BENEFIT BASE AND

7 MORE THAN $400,000.—Paragraph (1) of section 

8 1402(b) of the Internal Revenue Code of 1986 is amended 

9 to read as follows: 

10 ‘‘(1) in the case of the tax imposed by section 

11 1401(a) for any taxable year beginning in a calendar 

12 year in which the contribution and benefit base (as 

13 determined under section 230 of the Social Security 

14 Act) is less than $400,000, the excess (if any) of— 

15 ‘‘(A) so much of the net earnings from 

16 self-employment which is in excess of— 

17 ‘‘(i) an amount equal to the contribu18 tion and benefit base (as determined under 

19 section 230 of the Social Security Act) 

20 which is effective for the calendar year in 

21 which such taxable year begins, reduced 

22 (but not below zero) by 

23 ‘‘(ii) the amount of the wages paid to 

24 such individual during such taxable year, 

25 over 


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1 ‘‘(B) the sum of— 

2 ‘‘(i) the excess (if any) of— 

3 ‘‘(I) the net earnings from self4 employment reduced by the excess (if 

5 any) of subparagraph (A)(i) over sub6 paragraph (A)(ii), over 

7 ‘‘(II) $400,000, reduced by such 

8 contribution and benefit base, plus 

9 ‘‘(ii) the amount of the wages paid to 

10 such individual during such taxable year in 

11 excess of such contribution and benefit 

12 base and not in excess of $400,000; or’’. 

13 (b) FURTHER ADDITIONAL HOSPITAL INSURANCE

14 TAX ON VERY HIGH INCOME TAXPAYERS.— 

15 (1) IN GENERAL.—Section 1401(b) of the In16 ternal Revenue Code of 1986 is amended by adding 

17 at the end the following new paragraph: 

18 ‘‘(3) FURTHER ADDITIONAL TAX.— 

19 ‘‘(A) IN GENERAL.—In addition to the tax 

20 imposed by paragraphs (1) and (2) and the pre21 ceding subsection, there is hereby imposed on 

22 every taxpayer (other than a corporation, es23 tate, or trust) for each taxable year a tax equal 

24 to 1.2 percent of the self-employment income 

25 for such taxable year which is in excess of— 


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1 ‘‘(i) in the case of a joint return, 

2 $500,000, 

3 ‘‘(ii) in the case of a married taxpayer 

4 (as defined in section 7703) filing a separate return, 1 5 ⁄2 of the dollar amount deter6 mined under subparagraph (A), and 

7 ‘‘(iii) in any other case, $400,000. 

8 ‘‘(B) COORDINATION WITH FICA.—The 

9 amounts under clause (i), (ii), or (iii) (which10 ever is applicable) of subparagraph (A) shall be 

11 reduced (but not below zero) by the amount of 

12 wages taken into account in determining the 

13 tax imposed under section 3101(b)(3) with re14 spect to the taxpayer.’’. 

15 (2) NO DEDUCTION FOR FURTHER ADDITIONAL

16 TAX.— 

17 (A) IN GENERAL.—Section 164(f) of such 

18 Code is amended by striking ‘‘section 

19 1401(b)(2)’’ and inserting ‘‘paragraphs (2) and 

20 (3) of section 1401(b)’’. 

21 (B) DEDUCTION FOR NET EARNINGS FROM

22 SELF-EMPLOYMENT.—Section 1402(a)(12)(B) 

23 of such Code is amended by striking ‘‘the rate 

24 imposed under paragraph (2) of section 

25 1401(b)’’ and inserting ‘‘the rates imposed 


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1 under paragraphs (2) and (3) of section 

2 1401(b)’’. 

3 (3) TECHNICAL AMENDMENT.—Section 

4 1401(b)(2)(B) of such Code is amended by striking 

5 ‘‘section 3121(b)(2)’’ and inserting ‘‘section 

6 3101(b)(2)’’. 

7 (c) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to net earnings from self-employ9 ment derived, and taxable years beginning, on or after 

10 January 1 of the first calendar year that begins after the 

11 date of enactment of this Act. 

12 SEC. 4. TAXES ON UNEARNED INCOME. 

13 (a) MODIFICATIONS TO TAX ON NET INVESTMENT

14 INCOME.— 

15 (1) IN GENERAL.—Section 1411 of the Internal 

16 Revenue Code of 1986 is amended by adding at the 

17 end the following new subsection: 

18 ‘‘(f) ADDITIONAL AMOUNT FOR CERTAIN HIGH IN19 COME INDIVIDUALS.— 

20 ‘‘(1) INCLUSION OF SPECIFIED NET INCOME.— 

21 ‘‘(A) IN GENERAL.—In the case of any in22 dividual whose modified adjusted gross income 

23 for the taxable year exceeds the high income 

24 threshold amount, subsection (a)(1) shall be ap25 plied by substituting ‘the greater of specified 


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1 net income or net investment income’ for ‘net 

2 investment income’ in subparagraph (A) there3 of. 

4 ‘‘(B) PHASE-IN OF INCREASE.—The in5 crease in the tax imposed under subsection 

6 (a)(1) by reason of the application of subpara7 graph (A) (determined before application of 

8 paragraph (2)) shall not exceed the amount 

9 which bears the same ratio to the amount of 

10 such increase (determined without regard to 

11 this paragraph) as— 

12 ‘‘(i) the excess described in subpara13 graph (A), bears to 

‘‘(ii) $100,000 (1 14 ⁄2 such amount in the 

15 case of a married taxpayer (as defined in 

16 section 7703) filing a separate return). 

17 ‘‘(2) ADDITIONAL RATE BRACKET.—In the case 

18 of any individual whose modified adjusted gross in19 come for the taxable year exceeds the high income 

20 threshold amount, the amount of tax imposed under 

21 subsection (a)(1) shall be increased by an amount 

22 equal to 13.6 percent of the lesser of— 

23 ‘‘(A) the greater of the specified net in24 come or net investment income for the taxable 

25 year, or 


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1 ‘‘(B) the excess (if any) of— 

2 ‘‘(i) the modified adjusted gross in3 come for such taxable year, over 

4 ‘‘(ii) the high income threshold 

5 amount. 

6 ‘‘(3) DEFINITIONS.— 

7 ‘‘(A) HIGH INCOME THRESHOLD

8 AMOUNT.—For purposes of this subsection, the 

9 term ‘high income threshold amount’ means— 

10 ‘‘(i) except as provided in clause (ii) 

11 or (iii), $400,000, 

12 ‘‘(ii) in the case of a taxpayer making 

13 a joint return under section 6013 or a sur14 viving spouse (as defined in section 2(a)), 

15 $500,000, and 

16 ‘‘(iii) in the case of a married tax17 payer (as defined in section 7703) filing a 

separate return, 1 18 ⁄2 of the dollar amount 

19 determined under clause (ii). 

20 ‘‘(B) SPECIFIED NET INCOME.—For pur21 poses of this section, the term ‘specified net in22 come’ means net investment income deter23 mined— 

24 ‘‘(i) without regard to the phrase 

25 ‘other than such income which is derived in 


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1 the ordinary course of a trade or business 

2 not described in paragraph (2),’ in sub3 section (c)(1)(A)(i), 

4 ‘‘(ii) without regard to the phrase ‘de5 scribed in paragraph (2)’ in subsection 

6 (c)(1)(A)(ii), 

7 ‘‘(iii) without regard to the phrase 

8 ‘other than property held in a trade or 

9 business not described in paragraph (2)’ in 

10 subsection (c)(1)(A)(iii), 

11 ‘‘(iv) without regard to paragraphs 

12 (2), (3), and (4) of subsection (c), and 

13 ‘‘(v) by treating paragraphs (5) and 

14 (6) of section 469(c) (determined without 

15 regard to the phrase ‘To the extent pro16 vided in regulations,’ in such paragraph 

17 (6)) as applying for purposes of subsection 

18 (c) of this section.’’. 

19 (b) APPLICATION TO TRUSTS AND ESTATES.—Sec20 tion 1411(a)(2) of the Internal Revenue Code of 1986 is 

21 amended— 

22 (1) by striking ‘‘3.8 percent’’ and inserting 

23 ‘‘17.4 percent’’, and 

24 (2) in subparagraph (A) thereof, by striking 

25 ‘‘undistributed net investment income’’ and inserting 


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1 ‘‘the greater of undistributed specified net income or 

2 undistributed net investment income’’. 

3 (c) CLARIFICATIONS WITH RESPECT TO DETER4 MINATION OF NET INVESTMENT INCOME.— 

5 (1) CERTAIN EXCEPTIONS.—Section 1411(c)(6) 

6 of the Internal Revenue Code of 1986 is amended to 

7 read as follows: 

8 ‘‘(6) SPECIAL RULES.—Net investment income 

9 shall not include— 

10 ‘‘(A) any item taken into account in deter11 mining self-employment income for such taxable 

12 year on which a tax is imposed by section 

13 1401(b), 

14 ‘‘(B) wages received with respect to em15 ployment on which a tax is imposed under sec16 tion 3101(b) (determined without regard to sec17 tion 3101(c)) or 3201(a) (including amounts 

18 taken into account under section 3121(v)(2)), 

19 and 

20 ‘‘(C) wages received from the performance 

21 of services earned outside the United States for 

22 a foreign employer.’’. 

23 (2) NET OPERATING LOSSES NOT TAKEN INTO

24 ACCOUNT.—Section 1411(c)(1)(B) of such Code is 


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1 amended by inserting ‘‘(other than section 172)’’ 

2 after ‘‘this subtitle’’. 

3 (3) INCLUSION OF CERTAIN FOREIGN IN4 COME.— 

5 (A) IN GENERAL.—Section 1411(c)(1)(A) 

6 of such Code is amended by striking ‘‘and’’ at 

7 the end of clause (ii), by striking ‘‘over’’ at the 

8 end of clause (iii) and inserting ‘‘and’’, and by 

9 adding at the end the following new clause: 

10 ‘‘(iv) any amount includible in gross 

11 income under section 951, 951A, 1293, or 

12 1296, over’’. 

13 (B) PROPER TREATMENT OF CERTAIN

14 PREVIOUSLY TAXED EARNINGS AND PROFITS.— 

15 Section 1411(c) of such Code is amended by 

16 adding at the end the following new paragraph: 

17 ‘‘(7) CERTAIN EARNINGS AND PROFITS OF FOR18 EIGN CORPORATIONS.— 

19 ‘‘(A) IN GENERAL.—Except as otherwise 

20 provided by the Secretary, a distribution of 

21 earnings and profits that is not treated as a 

22 dividend for purposes of chapter 1 by reason of 

23 section 959(d) or section 1293(c) shall not be 

24 treated as a dividend for purposes of this sec25 tion. 


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1 ‘‘(B) REGULATIONS AND OTHER GUID2 ANCE.—The Secretary shall issue regulations or 

3 other guidance providing for the treatment of 

4 distributions by a foreign corporation after De5 cember 31, 2023, of earnings and profits of 

6 such foreign corporation which accrued before 

7 such date, but which have not been previously 

8 subject to tax under this section.’’. 

9 (d) TRANSFERS OF REVENUES TO OLD-AGE AND

10 SURVIVORS, DISABILITY INSURANCE, AND FEDERAL HOS11 PITAL INSURANCE TRUST FUNDS.— 

12 (1) FEDERAL OLD-AGE AND SURVIVORS TRUST

13 FUND.— 

14 (A) IN GENERAL.—Section 201(a) of the 

15 Social Security Act (42 U.S.C. 401(a)) is 

16 amended— 

17 (i) by striking ‘‘100 per centum of’’, 

18 (ii) by inserting ‘‘100 percent of’’ be19 fore ‘‘the taxes’’ each place it appears in 

20 paragraphs (1), (2), (3), and (4), and 

21 (iii) by striking ‘‘and’’ at the end of 

22 paragraph (3), by striking the period at 

23 the end of paragraph (4) and inserting ‘‘; 

24 and’’, and by inserting after paragraph (4) 

25 the following new paragraph: 


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1 ‘‘(5) 71.3 percent of the taxes imposed by sec2 tion 1411 of the Internal Revenue Code of 1986 for 

3 any taxable year beginning after December 31, 

4 2023, as determined by the Secretary of the Treas5 ury or the Secretary’s delegate based on tax returns 

6 under subtitle F of such Code, less the amounts 

7 specified in paragraph (3) of subsection (b).’’. 

8 (B) CONFORMING AMENDMENT.—The 

9 fourth sentence of section 201(a) of such Act 

10 (42 U.S.C. 401(a)) is amended by striking 

11 ‘‘clauses (3) and (4)’’ each place it appears and 

12 inserting ‘‘paragraphs (3), (4), and (5)’’. 

13 (2) FEDERAL DISABILITY INSURANCE TRUST

14 FUND.—Section 201(b) of the Social Security Act 

15 (42 U.S.C. 401(b)) is amended— 

16 (A) by striking ‘‘100 per centum of’’, and 

17 (B) by striking ‘‘and’’ at the end of para18 graph (1), by striking the period at the end of 

19 paragraph (2) and inserting ‘‘; and’’, and by in20 serting after paragraph (2) the following new 

21 paragraph: 

22 ‘‘(3) 10.3 percent of the taxes imposed by sec23 tion 1411 of the Internal Revenue Code of 1986 for 

24 any taxable year beginning after December 31, 

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1 ury or the Secretary’s delegate based on tax returns 

2 under subtitle F of such Code.’’. 

3 (3) FEDERAL HOSPITAL INSURANCE TRUST

4 FUND.—Section 1817(a) of the Social Security Act 

5 (42 U.S.C. 1395i(a)) is amended— 

6 (A) by striking ‘‘100 per centum of’’, 

7 (B) by inserting ‘‘100 percent of’’ before 

8 ‘‘the taxes’’ each place it appears in paragraphs 

9 (1) and (2), and 

10 (C) by striking ‘‘and’’ at the end of para11 graph (1), by striking the period at the end of 

12 paragraph (2) and inserting ‘‘; and’’, and by in13 serting after paragraph (2) the following new 

14 paragraph: 

15 ‘‘(3) 28.7 percent of the taxes imposed by sec16 tion 1411 of the Internal Revenue Code of 1986 for 

17 any taxable year beginning after December 31, 

18 2023, as determined by the Secretary of the Treas19 ury or the Secretary’s delegate based on tax returns 

20 under subtitle F of such Code.’’. 

21 (e) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to taxable years beginning after 

23 December 31, 2023. 

Æ 


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