Assuring Medicare’s Promise Act of 2023

Subjects: Taxation

Summary:  <p><strong>Assuring Medicare&rsquo;s Promise Act</strong> <strong><strong>of 2023</strong></strong></p> <p>This bill increases net investment income tax revenues by applying such tax to the trade or business income of certain high income taxpayers and includes the increased tax revenues in the Federal Hospital Insurance Trust Fund.</p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 34 Introduced in House (IH)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                 H. R. 34

To amend the Social Security Act and the Internal Revenue Code of 1986 
 to include net investment income tax imposed in the Federal Hospital 
   Insurance Trust Fund and to modify the net investment income tax.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 9, 2023

 Mr. Doggett (for himself, Ms. Barragan, Mr. Blumenauer, Mr. Boyle of 
   Pennsylvania, Mr. Cohen, Mr. Grijalva, Ms. Jayapal, Mr. Larson of 
   Connecticut, Ms. Moore of Wisconsin, Mr. Pocan, Ms. Sanchez, Ms. 
  Schakowsky, Mr. Schiff, Ms. Titus, Ms. Williams of Georgia, and Mr. 
    Casar) introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Social Security Act and the Internal Revenue Code of 1986 
 to include net investment income tax imposed in the Federal Hospital 
   Insurance Trust Fund and to modify the net investment income tax.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Assuring Medicare's Promise Act of 
2023''.

SEC. 2. INCLUSION OF NET INVESTMENT INCOME TAX IN HOSPITAL INSURANCE 
              TRUST FUND.

    (a) In General.--Section 1817(a) of the Social Security Act (42 
U.S.C. 1395i(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (1);
            (2) by striking the period at the end of paragraph (2) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (2) the following new 
        paragraph:
    ``(3) the taxes imposed by section 1411 of the Internal Revenue 
Code of 1986 reported to the Secretary of the Treasury or the 
Secretary's delegate on tax returns under subtitle F of such Code.''.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to taxes imposed for taxable years beginning after 
December 31, 2023.

SEC. 3. APPLICATION OF NET INVESTMENT INCOME TAX TO TRADE OR BUSINESS 
              INCOME OF CERTAIN HIGH INCOME INDIVIDUALS.

    (a) In General.--Section 1411 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(f) Application to Certain High Income Individuals.--
            ``(1) 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.
            ``(2) Phase-in of increase.--The increase in the tax 
        imposed under subsection (a)(1) by reason of the application of 
        paragraph (1) of this subsection shall not exceed the amount 
        which bears the same ratio to the amount of such increase 
        (determined without regard to this paragraph) as--
                    ``(A) the excess described in paragraph (1), bears 
                to
                    ``(B) $100,000 (\1/2\ such amount in the case of a 
                married taxpayer (as defined in section 7703) filing a 
                separate return).
            ``(3) High income threshold amount.--For purposes of this 
        subsection, the term `high income threshold amount' means--
                    ``(A) except as provided in subparagraph (B) or 
                (C), $400,000,
                    ``(B) 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
                    ``(C) in the case of a married taxpayer (as defined 
                in section 7703) filing a separate return, \1/2\ of the 
                dollar amount determined under subparagraph (B).
            ``(4) Specified net income.--For purposes of this section, 
        the term `specified net income' means net investment income 
        determined--
                    ``(A) 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),
                    ``(B) without regard to the phrase `described in 
                paragraph (2)' in subsection (c)(1)(A)(ii),
                    ``(C) 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),
                    ``(D) without regard to paragraphs (2), (3), and 
                (4) of subsection (c), and
                    ``(E) 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.''.
    (b) Application to Trusts and Estates.--Section 1411(a)(2)(A) of 
such Code is amended by striking ``undistributed net investment 
income'' and inserting ``the greater of undistributed specified net 
income or undistributed net investment income''.
    (c) Clarifications With Respect to Determination of Net Investment 
Income.--
            (1) Certain exceptions.--Section 1411(c)(6) of such Code is 
        amended to read as follows:
            ``(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) 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.''.
            (2) Net operating losses not taken into account.--Section 
        1411(c)(1)(B) of such Code is amended by inserting ``(other 
        than section 172)'' after ``this subtitle''.
            (3) Inclusion of certain foreign income.--
                    (A) In general.--Section 1411(c)(1)(A) of such Code 
                is amended by striking ``and'' at the end of clause 
                (ii), by striking ``over'' at the end of clause (iii) 
                and inserting ``and'', and by adding at the end the 
                following new clause:
                            ``(iv) any amount includible in gross 
                        income under section 951, 951A, 1293, or 1296, 
                        over''.
                    (B) Proper treatment of certain previously taxed 
                income.--Section 1411(c) of such Code is amended by 
                adding at the end the following new paragraph:
            ``(7) Certain previously taxed income.--The Secretary shall 
        issue regulations or other guidance providing for the treatment 
        of--
                    ``(A) distributions of amounts previously included 
                in gross income for purposes of chapter 1 but not 
                previously subject to tax under this section, and
                    ``(B) distributions described in section 962(d).''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2023.
    (e) Transition Rule.--The regulations or other guidance issued by 
the Secretary under section 1411(c)(7) of the Internal Revenue Code of 
1986 (as added by this section) shall include provisions which provide 
for the proper coordination and application of clauses (i) and (iv) of 
section 1411(c)(1)(A) with respect to--
            (1) taxable years beginning on or before December 31, 2023, 
        and
            (2) taxable years beginning after such date.
                                 &lt;all&gt;
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