Assuring Medicare’s Promise Act of 2025
Rep. Doggett Proposes Taxing High-Income Business Owners to Shore Up Medicare Funding
This bill was recently introduced and is currently being reviewed by the House Committee on Ways and Means. It is in the early stages of the legislative process and is considered active. There are no upcoming votes or hearings scheduled at this time.
Legislative Progress
This bill is supported only by Democrats and involves raising taxes, which the current House leadership generally opposes.
Key Points
Impact Analysis
Personal Impact
Life & Work
High-income small business owners with pass-through income (S-corps, partnerships, sole proprietorships) earning above $400,000 individually or $500,000 jointly would face a new 3.8% tax on business income that is currently exempt from the Net Investment Income Tax. This closes a loophole that primarily benefits wealthy business owners who structure income to avoid Medicare-related taxes.
“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'”
Programs
Milestones
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
3 articlesNew legislation seeks to close tax loopholes to extend Medicare solvency
House Rep. Lloyd Doggett introduced the Assuring Medicare's Promise Act to redirect net investment income tax (NIIT) revenue to the Hospital Insurance Fund. The bill ensures high-income owners of pass-through businesses pay the 3.8% tax, potentially extending solvency through 2040.
3 policy heavyweights endangered by redistricting
The article highlights Rep. Lloyd Doggett's legislative legacy as a senior member of the Ways and Means Committee, noting his persistent efforts to reform taxation for high earners and his role as a 'lone voice' fighting for Medicare's fiscal health and against private insurer overpayments.
Medicare Trust Fund Extends Solvency Another 5 Years
The report notes that the Biden administration has proposed extending Medicare solvency by increasing the tax rate on income above $400,000 and closing loopholes in existing Medicare taxes, including dedicating the net investment income tax to the Hospital Insurance Trust Fund.
Source Information
Document Type
Congressional Bill
Official Title
Assuring Medicare’s Promise Act of 2025
Data Sources
Sponsor
Cosponsors
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