July 22, 2026
Mr. Kennedy introduced the following bill; which was read twice and referred to the Committee on Finance
To amend the Internal Revenue Code of 1986 to apply inflation adjustments to the additional hospital insurance tax on high income taxpayers.
Section 1. Inflation Adjustment
(a) Employment Taxes
Section 3101 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
(d) Inflation adjustments
(1) In general
In the case of any calendar year beginning after 2026, each of the dollar amounts in subparagraphs (A) and (C) of subsection (b)(2) shall be increased by an amount equal to—
(A)
such dollar amount, multiplied by
(B)
the cost-of-living adjustment determined under section (1)(f)(3) for such calendar year, determined by substituting
calendar year 2025forcalendar year 2016in subparagraph (A)(ii) thereof.(2) Rounding
If any amount as adjusted under paragraph (1) is not a multiple of $1,000, such amount shall be rounded to the next highest multiple of $1,000.
(b) Self-Employment Taxes
Section 1401 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
(d) Inflation adjustments
(1) In general
In the case of any taxable year beginning after 2026, each of the dollar amounts in clauses (i) and (iii) of subsection (b)(2)(A) shall be increased by an amount equal to—
(A)
such dollar amount, multiplied by
(B)
the cost-of-living adjustment determined under section (1)(f)(3) for the calendar year in which the taxable year begins, determined by substituting
calendar year 2025forcalendar year 2016in subparagraph (A)(ii) thereof.(2) Rounding
If any amount as adjusted under paragraph (1) is not a multiple of $1,000, such amount shall be rounded to the next highest multiple of $1,000.