# Plain Language Summary: Assuring Medicare's Promise Act of 2023

This bill makes changes to how certain wealthy people pay taxes, with the goal of bringing more money into Medicare's Hospital Insurance Trust Fund. Right now, there's a 3.8% tax on investment income (like profits from stocks, rental properties, and other investments) for high earners. This bill expands that tax and also directs the money collected to help fund Medicare Part A, which covers hospital stays and related care.

The main change affects wealthy business owners and investors. If you make more than $400,000 a year as a single person (or $500,000 if you're married filing jointly), this bill would apply the investment income tax to more of your earnings. Specifically, it would tax not just your investment profits, but also income from businesses you actively run—something the current law doesn't do. The bill phases in this change gradually, so the impact increases as your income goes higher above these thresholds. For example, if you're a successful entrepreneur or own a business that generates significant personal income, you'd likely owe more in taxes under this bill.

The bill also makes technical changes to clarify what counts as investment income and what doesn't. It excludes regular wages from employment and self-employment income that's already being taxed through payroll taxes, so people aren't taxed twice on the same money. Additionally, it includes certain types of foreign investment income that currently escape this tax.

For most Americans—anyone making less than $400,000 a year—this bill wouldn't directly affect them. The changes are specifically targeted at high-income individuals and wealthy business owners. The revenue collected would go directly to Medicare's hospital insurance fund, which helps pay for hospital care for seniors and disabled people on Medicare.

Assuring Medicare’s Promise Act of 2023

Doggett, Lloyd

Assuring Medicare&rsquo;s Promise Act of 2023 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.