119-hr609

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 609 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 609

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 22, 2025

 Mr. Doggett (for himself, Ms. Adams, Ms. Barragan, Mr. Boyle of 
Pennsylvania, Ms. Brownley, Mr. Carson, Mr. Casar, Mr. Castro of Texas, 
 Ms. Chu, Mr. Cohen, Mr. Davis of Illinois, Ms. DeGette, Ms. DeLauro, 
Mr. Deluzio, Mrs. Dingell, Ms. Escobar, Mr. Espaillat, Mr. Fields, Mr. 
 Frost, Mr. Garamendi, Mr. Goldman of New York, Mr. Grijalva, Mr. 
 Huffman, Ms. Jayapal, Mr. Johnson of Georgia, Mr. Khanna, Ms. Lee of 
 Pennsylvania, Mr. Levin, Ms. Moore of Wisconsin, Ms. Norton, Ms. 
 Ocasio-Cortez, Ms. Pingree, Mr. Pocan, Mrs. Ramirez, Ms. Salinas, Ms. 
Sanchez, Ms. Schakowsky, Ms. Tlaib, Mr. Tonko, Mr. Turner of Texas, Mr. 
 Veasey, Ms. Velazquez, Ms. Williams of Georgia, and Ms. Wilson of 
 Florida) 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 
2025''.

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, 2025.

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, 2025.

    (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, 2025, 
 and

    (2) taxable years beginning after such date.
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