I
119THCONGRESS
1
STSESSION 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
JANUARY22, 2025
Mr. D
OGGETT(for himself, Ms. ADAMS, Ms. BARRAGA´N, Mr. BOYLEof Penn-
sylvania, Ms. B
ROWNLEY, Mr. CARSON, Mr. CASAR, Mr. CASTROof
Texas, Ms. C
HU, Mr. COHEN, Mr. DAVISof Illinois, Ms. DEGETTE, Ms.
D
ELAURO, Mr. DELUZIO, Mrs. DINGELL, Ms. ESCOBAR, Mr. ESPAILLAT,
Mr. F
IELDS, Mr. FROST, Mr. GARAMENDI, Mr. GOLDMANof New York,
Mr. G
RIJALVA, Mr. HUFFMAN, Ms. JAYAPAL, Mr. JOHNSONof Georgia,
Mr. K
HANNA, Ms. LEEof Pennsylvania, Mr. LEVIN, Ms. MOOREof Wis-
consin, Ms. N
ORTON, Ms. OCASIO-CORTEZ, Ms. PINGREE, Mr. POCAN,
Mrs. R
AMIREZ, Ms. SALINAS, Ms. SA´NCHEZ, Ms. SCHAKOWSKY, Ms.
T
LAIB, Mr. TONKO, Mr. TURNERof Texas, Mr. VEASEY, Ms.
V
ELA´ZQUEZ, Ms. WILLIAMSof Georgia, and Ms. WILSONof Florida) in-
troduced 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 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
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SECTION 1. SHORT TITLE. 1
This Act may be cited as the ‘‘Assuring Medicare’s 2
Promise Act of 2025’’. 3
SEC. 2. INCLUSION OF NET INVESTMENT INCOME TAX IN 4
HOSPITAL INSURANCE TRUST FUND. 5
(a) I
NGENERAL.—Section 1817(a) of the Social Se-6
curity Act (42 U.S.C. 1395i(a)) is amended— 7
(1) by striking ‘‘and’’ at the end of paragraph 8
(1); 9
(2) by striking the period at the end of para-10
graph (2) and inserting ‘‘; and’’; and 11
(3) by inserting after paragraph (2) the fol-12
lowing new paragraph: 13
‘‘(3) the taxes imposed by section 1411 of the Inter-14
nal Revenue Code of 1986 reported to the Secretary of 15
the Treasury or the Secretary’s delegate on tax returns 16
under subtitle F of such Code.’’. 17
(b) E
FFECTIVEDATE.—The amendments made by 18
this section shall apply with respect to taxes imposed for 19
taxable years beginning after December 31, 2025. 20
SEC. 3. APPLICATION OF NET INVESTMENT INCOME TAX TO 21
TRADE OR BUSINESS INCOME OF CERTAIN 22
HIGH INCOME INDIVIDUALS. 23
(a) I
NGENERAL.—Section 1411 of the Internal Rev-24
enue Code of 1986 is amended by adding at the end the 25
following new subsection: 26
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‘‘(f) APPLICATION TOCERTAINHIGHINCOMEINDI-1
VIDUALS.— 2
‘‘(1) I
N GENERAL.—In the case of any indi-3
vidual whose modified adjusted gross income for the 4
taxable year exceeds the high income threshold 5
amount, subsection (a)(1) shall be applied by sub-6
stituting ‘the greater of specified net income or net 7
investment income’ for ‘net investment income’ in 8
subparagraph (A) thereof. 9
‘‘(2) P
HASE-IN OF INCREASE.—The increase in 10
the tax imposed under subsection (a)(1) by reason of 11
the application of paragraph (1) of this subsection 12
shall not exceed the amount which bears the same 13
ratio to the amount of such increase (determined 14
without regard to this paragraph) as— 15
‘‘(A) the excess described in paragraph (1), 16
bears to 17
‘‘(B) $100,000 (
1
⁄2such amount in the 18
case of a married taxpayer (as defined in sec-19
tion 7703) filing a separate return). 20
‘‘(3) H
IGH INCOME THRESHOLD AMOUNT .—For 21
purposes of this subsection, the term ‘high income 22
threshold amount’ means— 23
‘‘(A) except as provided in subparagraph 24
(B) or (C), $400,000, 25
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‘‘(B) in the case of a taxpayer making a 1
joint return under section 6013 or a surviving 2
spouse (as defined in section 2(a)), $500,000, 3
and 4
‘‘(C) in the case of a married taxpayer (as 5
defined in section 7703) filing a separate re-6
turn,
1
⁄2of the dollar amount determined under 7
subparagraph (B). 8
‘‘(4) S
PECIFIED NET INCOME.—For purposes of 9
this section, the term ‘specified net income’ means 10
net investment income determined— 11
‘‘(A) without regard to the phrase ‘other 12
than such income which is derived in the ordi-13
nary course of a trade or business not described 14
in paragraph (2),’ in subsection (c)(1)(A)(i), 15
‘‘(B) without regard to the phrase ‘de-16
scribed in paragraph (2)’ in subsection 17
(c)(1)(A)(ii), 18
‘‘(C) without regard to the phrase ‘other 19
than property held in a trade or business not 20
described in paragraph (2)’ in subsection 21
(c)(1)(A)(iii), 22
‘‘(D) without regard to paragraphs (2), 23
(3), and (4) of subsection (c), and 24
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‘‘(E) by treating paragraphs (5) and (6) of 1
section 469(c) (determined without regard to 2
the phrase ‘To the extent provided in regula-3
tions,’ in such paragraph (6)) as applying for 4
purposes of subsection (c) of this section.’’. 5
(b) A
PPLICATION TOTRUSTS ANDESTATES.—Sec-6
tion 1411(a)(2)(A) of such Code is amended by striking 7
‘‘undistributed net investment income’’ and inserting ‘‘the 8
greater of undistributed specified net income or undistrib-9
uted net investment income’’. 10
(c) C
LARIFICATIONSWITHRESPECT TO DETER-11
MINATION OFNETINVESTMENTINCOME.— 12
(1) C
ERTAIN EXCEPTIONS.—Section 1411(c)(6) 13
of such Code is amended to read as follows: 14
‘‘(6) S
PECIAL RULES.—Net investment income 15
shall not include— 16
‘‘(A) any item taken into account in deter-17
mining self-employment income for such taxable 18
year on which a tax is imposed by section 19
1401(b), 20
‘‘(B) wages received with respect to em-21
ployment on which a tax is imposed under sec-22
tion 3101(b) or 3201(a) (including amounts 23
taken into account under section 3121(v)(2)), 24
and 25
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‘‘(C) wages received from the performance 1
of services earned outside the United States for 2
a foreign employer.’’. 3
(2) N
ET OPERATING LOSSES NOT TAKEN INTO 4
ACCOUNT.—Section 1411(c)(1)(B) of such Code is 5
amended by inserting ‘‘(other than section 172)’’ 6
after ‘‘this subtitle’’. 7
(3) I
NCLUSION OF CERTAIN FOREIGN IN -8
COME.— 9
(A) I
N GENERAL.—Section 1411(c)(1)(A) 10
of such Code is amended by striking ‘‘and’’ at 11
the end of clause (ii), by striking ‘‘over’’ at the 12
end of clause (iii) and inserting ‘‘and’’, and by 13
adding at the end the following new clause: 14
‘‘(iv) any amount includible in gross 15
income under section 951, 951A, 1293, or 16
1296, over’’. 17
(B) P
ROPER TREATMENT OF CERTAIN 18
PREVIOUSLY TAXED INCOME .—Section 1411(c) 19
of such Code is amended by adding at the end 20
the following new paragraph: 21
‘‘(7) C
ERTAIN PREVIOUSLY TAXED INCOME .— 22
The Secretary shall issue regulations or other guid-23
ance providing for the treatment of— 24
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‘‘(A) distributions of amounts previously 1
included in gross income for purposes of chap-2
ter 1 but not previously subject to tax under 3
this section, and 4
‘‘(B) distributions described in section 5
962(d).’’. 6
(d) E
FFECTIVEDATE.—The amendments made by 7
this section shall apply to taxable years beginning after 8
December 31, 2025. 9
(e) T
RANSITIONRULE.—The regulations or other 10
guidance issued by the Secretary under section 1411(c)(7) 11
of the Internal Revenue Code of 1986 (as added by this 12
section) shall include provisions which provide for the 13
proper coordination and application of clauses (i) and (iv) 14
of section 1411(c)(1)(A) with respect to— 15
(1) taxable years beginning on or before De-16
cember 31, 2025, and 17
(2) taxable years beginning after such date. 18
Æ
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