Text of Senate Amendment 4411

Text of Senate Amendment 4411

Congressional Record, Volume 172 Issue 48 (Tuesday, March 17, 2026) [Congressional Record Volume 172, Number 48 (Tuesday, March 17, 2026)] [Senate] [Pages S1111-S1112] From the Congressional Record Online through the Government Publishing Office [ www.gpo.gov ] SA 4411. Mr. WHITEHOUSE submitted an amendment intended to be proposed by him to the bill S. 1383, to establish the Veterans Advisory Committee on Equal Access, and for other purposes; which was ordered to lie on the table; as follows: In lieu of the matter proposed to be inserted, insert the following: SECTION 1. SHORT TITLE. This Act may be cited as the ``Medicare and Social Security Fair Share Act''. SEC. 2. MODIFICATION OF PAYROLL TAXES. (a) Wage Base for Taxes Funding Social Security.-- (1) In general.--Paragraph (1) of section 3121(a) of the Internal Revenue Code of 1986 is amended to read as follows: ``(1) in the case of taxes imposed by sections 3101(a) and 3111(a), for any calendar year in which the contribution and benefit base (as determined under section 230 of the Social Security Act) is less than $400,000, so much of the remuneration (other than remuneration referred to in the succeeding paragraphs of this subsection) with respect to employment that has been paid to an individual by an employer during the calendar year as exceeds such contribution and benefit base but does not exceed $400,000;''. (2) Conforming amendments.-- (A) Successor employers.--Section 3121 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: ``(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.''. (B) Application to railroad retirement taxes.--Clause (i) of section 3231(e)(2)(A) of such Code is amended to read as follows: ``(i) In general.--For any calendar year in which the applicable base is less than $400,000, the term `compensation' does not include so much of the remuneration paid during any calendar year to an individual by an employer for services rendered as an employee to such employer as exceeds the applicable base but does not exceed $400,000.''. (b) Further Additional Hospital Insurance Tax on Very High Income Taxpayers.-- (1) In general.--Section 3101(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: ``(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, \1/2\ of the dollar amount determined under subparagraph (A), and ``(C) in any other case, $400,000.''. (2) Collection of tax.--Section 3102 of such Code is amended by adding at the end the following new subsection: ``(g) Special Rules for Further Additional Tax.-- ``(1) In general.--In the case of any tax imposed by section 3101(b)(3), subsection (a) shall only apply to the extent to which the taxpayer receives wages from the employer in excess of $400,000, and the employer may disregard the amount of wages received by such taxpayer's spouse. ``(2) Collection of amounts not withheld.--To the extent that the amount of any tax imposed by section 3101(b)(3) is not collected by the employer, such tax shall be paid by the employee. ``(3) Tax paid by recipient.--If an employer, in violation of this chapter, fails to deduct and withhold the tax imposed by section 3101(b)(3) and thereafter the tax is paid by the employee, the tax so required to be deducted and withheld shall not be collected from the employer, but this paragraph shall in no case relieve the employer from liability for any penalties or additions to tax otherwise applicable in respect of such failure to deduct and withhold.''. (c) Effective Date.--The amendments made by this section shall apply to remuneration paid, and taxable years beginning, on or after January 1 of the first calendar year that begins after the date of enactment of this Act. SEC. 3. MODIFICATION OF TAXES ON SELF-EMPLOYMENT INCOME. (a) Tax on Net Earnings From Self-Employment up to Contribution and Benefit Base and More Than $400,000.-- Paragraph (1) of section 1402(b) of the Internal Revenue Code of 1986 is amended to read as follows: ``(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''. (b) Further Additional Hospital Insurance Tax on Very High Income Taxpayers.-- (1) In general.--Section 1401(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: ``(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, \1/2\ 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.''. (2) No deduction for further additional tax.-- (A) In general.--Section 164(f) of such Code is amended by striking ``section 1401(b)(2)'' and inserting ``paragraphs (2) and (3) of section 1401(b)''. (B) Deduction for net earnings from self-employment.-- Section 1402(a)(12)(B) of such Code is amended by striking ``the rate imposed under paragraph (2) of section 1401(b)'' and inserting ``the rates imposed under paragraphs (2) and (3) of section 1401(b)''. (3) Technical amendment.--Section 1401(b)(2)(B) of such Code is amended by striking ``section 3121(b)(2)'' and inserting ``section 3101(b)(2)''. (c) Effective Date.--The amendments made by this section shall apply to net earnings from self-employment derived, and taxable years beginning, on or after January 1 of the first calendar year that begins after the date of enactment of this Act. [[Page S1112]] SEC. 4. TAXES ON UNEARNED INCOME. (a) Modifications to Tax on Net Investment Income.-- (1) In general.--Section 1411 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: ``(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