Assuring Medicare’s Promise Act of 2025

This bill aims to strengthen Medicare by sending money from the tax on certain investment income into Medicare’s Hospital Insurance Trust Fund, starting with the 2026 tax year. It also changes how that tax works for people with higher incomes. If your income is above set limits, the tax would also cover certain business income, with a gradual phase‑in so there isn’t a sudden jump in taxes. The bill makes clear that wages and self‑employment income already taxed for Medicare are not counted again, and it adds some types of foreign income to the calculation, with rules to handle past amounts and a transition across 2025–2026.

• Who is affected: Individuals with higher incomes (generally $400,000 for most single filers and $500,000 for joint filers) and certain trusts and estates.
• What changes: Investment tax dollars go directly to Medicare’s hospital fund; the tax base expands to include some business income for high‑income taxpayers; wages and self‑employment income already subject to Medicare taxes are excluded; certain foreign income is included with guidance to follow .
• When: Most changes apply to tax years beginning after December 31, 2025 .