Bill · S. 5085· Senate(119-S-5085)
A bill to amend the Internal Revenue Code of 1986 to apply inflation adjustments to the additional hospital insurance tax on high income taxpayers.
- Introduced
- 7/22/2026
- Last activity
- 7/22/2026 — Read twice and referred to the Committee on Finance.
- Sponsored by
- John Kennedy
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill aims to amend the Internal Revenue Code of 1986. It specifically focuses on applying inflation adjustments to the additional hospital insurance tax. These adjustments would target high income taxpayers. The changes involve updating dollar amounts for employment taxes and self-employment taxes. These adjustments would take effect for calendar or taxable years beginning after 2026.
Yes· 3 of 5
Does this raise taxes on the highest earners?+3
The bill increases the dollar thresholds for the additional hospital insurance tax via inflation adjustments, which targets higher income earners.
Does this put more money into Medicare, the health coverage for people over 65?+2
The additional hospital insurance tax helps fund Medicare, and updating these thresholds through inflation adjustments helps maintain that revenue stream.
Does this make the government pay for what it commits to?+1
By adjusting hospital insurance tax thresholds upward through inflation adjustments, the bill helps ensure tax revenue keeps pace with inflation.
The opposite
Would high-income households be better off under this?-2
High income earners will see higher tax thresholds for the additional hospital insurance tax due to inflation adjustments and rounding up.
Who it would affect, and how
Potential Positive Impacts for People
-
Inflation Adjustments to Employment Taxes: This provision applies an increase to specific dollar amounts in the Internal Revenue Code based on a cost-of-living adjustment (Section 1(a)).
-
Inflation Adjustments to Self-Employment Taxes: This provision applies an increase to specific dollar amounts for self-employment taxes based on a cost-of-living adjustment (Section 1(b)).
Potential Negative Impacts for People
-
Increased Tax Thresholds: The bill increases the dollar amounts used for the additional hospital insurance tax through cost-of-living adjustments (Section 1(a) and Section 1(b)).
-
Rounding Up of Amounts: Any adjusted amount that is not a multiple of $1,000 will be rounded up to the next highest multiple of $1,000 (Section 1(a)(2) and Section 1(b)(2)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Increases Wealthy Taxes+3Improves Fiscal Responsibility+1
- Healthcare
- Increases Medicare Funding+2
- Demographic And Interest Groups
- Good For Retirees+1Good For Seniors+1Good For High Income Households-2
- 7/22/2026
- Read twice and referred to the Committee on Finance.
- Introduced in Senate