HR-609 — Assuring Medicare’s Promise Act of 2025

YourVoice.Now Summary

Corporate BenefitsAverage Household Impact

Redirects the 3.8% investment tax into Medicare's trust fund and closes pass-through income loopholes for earners above $400,000.

Corporate Benefits

Net Investment Income Tax — Expanded to cover pass-through business income above $400K/$500K

Average Household Impact

Medicare Hospital Insurance Trust Fund — Receives Net Investment Income Tax revenue

The details

Revenue from the 3.8% Net Investment Income Tax would be redirected into the Medicare Hospital Insurance Trust Fund instead of the general Treasury, helping shore up Medicare's finances. The bill also expands what counts as investment income for high earners by closing exemptions for pass-through business income. The expansion phases in for individuals earning above $400,000 (or $500,000 for joint filers), reaching full effect $100,000 above those thresholds. Changes apply to tax years beginning after December 31, 2025.

Congressional Summary

Assuring Medicare’s Promise Act of 2025 This bill increases the net investment tax for certain taxpayers and appropriates revenue from the net investment tax to the Federal Hospital Insurance Trust Fund (which finances Medicare Part A). The bill also requires the Internal Revenue Service (IRS) to issue additional guidance on the net investment tax. The bill requires individuals with a modified adjusted gross income (MAGI) exceeding $400,000 ($500,000 for joint filers and $250,000 for married individuals filing separately), estates, and trusts to pay a tax of 3.8% on the greater of their specified net income or net investment income, subject to limitations. (Under current law, individuals with a MAGI exceeding $200,000 [or $250,000 for joint filers], estates, and trusts pay a 3.8% tax on net investment income.) The bill defines specified net income by expanding the definition of net investment income to include gross income from any trade or business (unless subject to employment taxes), including interest, dividends, annuities, royalties, and rents; include net gain from the disposition of business property; eliminate the exclusion of income from the investment of working capital; and eliminate the exception related to certain active partnership or S corporation interests. The bill also expands the net investment tax definition of a trade or business, disallows net operating losses in calculating net investment income, includes certain foreign-sourced income in net investment income, and requires the IRS to issue guidance on the treatment of certain corporate distributions for purposes of the net investment tax.

Legislative Subjects

Financial services and investmentsGovernment trust fundsHealth care costs and insuranceHealth programs administration and fundingHospital careIncome tax ratesInterest, dividends, interest ratesMedicareTaxation of foreign income

Details

Congress: 119th
Chamber: House
Status: summarized
Action: Introduced in House
Action Date: 2025-01-22
Date Added: 2026-05-20
Source: Congress.gov →

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