I
118THCONGRESS
1
STSESSION 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
JANUARY9, 2023
Mr. D
OGGETT(for himself, Ms. BARRAGA´N, Mr. BLUMENAUER, Mr. BOYLE
of Pennsylvania, Mr. C
OHEN, Mr. GRIJALVA, Ms. JAYAPAL, Mr. LARSON
of Connecticut, Ms. M
OOREof Wisconsin, Mr. POCAN, Ms. SA´NCHEZ, Ms.
S
CHAKOWSKY, Mr. SCHIFF, Ms. TITUS, Ms. WILLIAMSof Georgia, and
Mr. C
ASAR) introduced the following bill; which was referred to the Com-
mittee 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 im-
posed in the Federal Hospital Insurance Trust Fund
and to modify the net investment income tax.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Assuring Medicare’s 4
Promise Act of 2023’’. 5
VerDate Sep 11 2014 03:48 Jan 12, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H34.IH H34
kjohnson on DSK79L0C42PROD with BILLS 2
•HR 34 IH
SEC. 2. INCLUSION OF NET INVESTMENT INCOME TAX IN 1
HOSPITAL INSURANCE TRUST FUND. 2
(a) I
NGENERAL.—Section 1817(a) of the Social Se-3
curity Act (42 U.S.C. 1395i(a)) is amended— 4
(1) by striking ‘‘and’’ at the end of paragraph 5
(1); 6
(2) by striking the period at the end of para-7
graph (2) and inserting ‘‘; and’’; and 8
(3) by inserting after paragraph (2) the fol-9
lowing new paragraph: 10
‘‘(3) the taxes imposed by section 1411 of the Inter-11
nal Revenue Code of 1986 reported to the Secretary of 12
the Treasury or the Secretary’s delegate on tax returns 13
under subtitle F of such Code.’’. 14
(b) E
FFECTIVEDATE.—The amendments made by 15
this section shall apply with respect to taxes imposed for 16
taxable years beginning after December 31, 2023. 17
SEC. 3. APPLICATION OF NET INVESTMENT INCOME TAX TO 18
TRADE OR BUSINESS INCOME OF CERTAIN 19
HIGH INCOME INDIVIDUALS. 20
(a) I
NGENERAL.—Section 1411 of the Internal Rev-21
enue Code of 1986 is amended by adding at the end the 22
following new subsection: 23
‘‘(f) A
PPLICATION TOCERTAINHIGHINCOMEINDI-24
VIDUALS.— 25
VerDate Sep 11 2014 03:48 Jan 12, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H34.IH H34
kjohnson on DSK79L0C42PROD with BILLS 3
•HR 34 IH
‘‘(1) IN GENERAL.—In the case of any indi-1
vidual whose modified adjusted gross income for the 2
taxable year exceeds the high income threshold 3
amount, subsection (a)(1) shall be applied by sub-4
stituting ‘the greater of specified net income or net 5
investment income’ for ‘net investment income’ in 6
subparagraph (A) thereof. 7
‘‘(2) P
HASE-IN OF INCREASE.—The increase in 8
the tax imposed under subsection (a)(1) by reason of 9
the application of paragraph (1) of this subsection 10
shall not exceed the amount which bears the same 11
ratio to the amount of such increase (determined 12
without regard to this paragraph) as— 13
‘‘(A) the excess described in paragraph (1), 14
bears to 15
‘‘(B) $100,000 (
1
⁄2such amount in the 16
case of a married taxpayer (as defined in sec-17
tion 7703) filing a separate return). 18
‘‘(3) H
IGH INCOME THRESHOLD AMOUNT .—For 19
purposes of this subsection, the term ‘high income 20
threshold amount’ means— 21
‘‘(A) except as provided in subparagraph 22
(B) or (C), $400,000, 23
‘‘(B) in the case of a taxpayer making a 24
joint return under section 6013 or a surviving 25
VerDate Sep 11 2014 03:48 Jan 12, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H34.IH H34
kjohnson on DSK79L0C42PROD with BILLS 4
•HR 34 IH
spouse (as defined in section 2(a)), $500,000, 1
and 2
‘‘(C) in the case of a married taxpayer (as 3
defined in section 7703) filing a separate re-4
turn,
1
⁄2of the dollar amount determined under 5
subparagraph (B). 6
‘‘(4) S
PECIFIED NET INCOME.—For purposes of 7
this section, the term ‘specified net income’ means 8
net investment income determined— 9
‘‘(A) without regard to the phrase ‘other 10
than such income which is derived in the ordi-11
nary course of a trade or business not described 12
in paragraph (2),’ in subsection (c)(1)(A)(i), 13
‘‘(B) without regard to the phrase ‘de-14
scribed in paragraph (2)’ in subsection 15
(c)(1)(A)(ii), 16
‘‘(C) without regard to the phrase ‘other 17
than property held in a trade or business not 18
described in paragraph (2)’ in subsection 19
(c)(1)(A)(iii), 20
‘‘(D) without regard to paragraphs (2), 21
(3), and (4) of subsection (c), and 22
‘‘(E) by treating paragraphs (5) and (6) of 23
section 469(c) (determined without regard to 24
the phrase ‘To the extent provided in regula-25
VerDate Sep 11 2014 03:48 Jan 12, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H34.IH H34
kjohnson on DSK79L0C42PROD with BILLS 5
•HR 34 IH
tions,’ in such paragraph (6)) as applying for 1
purposes of subsection (c) of this section.’’. 2
(b) A
PPLICATION TOTRUSTS ANDESTATES.—Sec-3
tion 1411(a)(2)(A) of such Code is amended by striking 4
‘‘undistributed net investment income’’ and inserting ‘‘the 5
greater of undistributed specified net income or undistrib-6
uted net investment income’’. 7
(c) C
LARIFICATIONSWITHRESPECT TO DETER-8
MINATION OFNETINVESTMENTINCOME.— 9
(1) C
ERTAIN EXCEPTIONS.—Section 1411(c)(6) 10
of such Code is amended to read as follows: 11
‘‘(6) S
PECIAL RULES.—Net investment income 12
shall not include— 13
‘‘(A) any item taken into account in deter-14
mining self-employment income for such taxable 15
year on which a tax is imposed by section 16
1401(b), 17
‘‘(B) wages received with respect to em-18
ployment on which a tax is imposed under sec-19
tion 3101(b) or 3201(a) (including amounts 20
taken into account under section 3121(v)(2)), 21
and 22
‘‘(C) wages received from the performance 23
of services earned outside the United States for 24
a foreign employer.’’. 25
VerDate Sep 11 2014 03:48 Jan 12, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H34.IH H34
kjohnson on DSK79L0C42PROD with BILLS 6
•HR 34 IH
(2) NET OPERATING LOSSES NOT TAKEN INTO 1
ACCOUNT.—Section 1411(c)(1)(B) of such Code is 2
amended by inserting ‘‘(other than section 172)’’ 3
after ‘‘this subtitle’’. 4
(3) I
NCLUSION OF CERTAIN FOREIGN IN -5
COME.— 6
(A) I
N GENERAL.—Section 1411(c)(1)(A) 7
of such Code is amended by striking ‘‘and’’ at 8
the end of clause (ii), by striking ‘‘over’’ at the 9
end of clause (iii) and inserting ‘‘and’’, and by 10
adding at the end the following new clause: 11
‘‘(iv) any amount includible in gross 12
income under section 951, 951A, 1293, or 13
1296, over’’. 14
(B) P
ROPER TREATMENT OF CERTAIN 15
PREVIOUSLY TAXED INCOME .—Section 1411(c) 16
of such Code is amended by adding at the end 17
the following new paragraph: 18
‘‘(7) C
ERTAIN PREVIOUSLY TAXED INCOME .— 19
The Secretary shall issue regulations or other guid-20
ance providing for the treatment of— 21
‘‘(A) distributions of amounts previously 22
included in gross income for purposes of chap-23
ter 1 but not previously subject to tax under 24
this section, and 25
VerDate Sep 11 2014 03:48 Jan 12, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H34.IH H34
kjohnson on DSK79L0C42PROD with BILLS 7
•HR 34 IH
‘‘(B) distributions described in section 1
962(d).’’. 2
(d) E
FFECTIVEDATE.—The amendments made by 3
this section shall apply to taxable years beginning after 4
December 31, 2023. 5
(e) T
RANSITIONRULE.—The regulations or other 6
guidance issued by the Secretary under section 1411(c)(7) 7
of the Internal Revenue Code of 1986 (as added by this 8
section) shall include provisions which provide for the 9
proper coordination and application of clauses (i) and (iv) 10
of section 1411(c)(1)(A) with respect to— 11
(1) taxable years beginning on or before De-12
cember 31, 2023, and 13
(2) taxable years beginning after such date. 14
Æ
VerDate Sep 11 2014 03:48 Jan 12, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6301 E:\BILLS\H34.IH H34
kjohnson on DSK79L0C42PROD with BILLS