US SB1690

Applies Social Security payroll taxes to wages between the current contribution base and $400,000, closing the existing gap where high earners stop paying Social Security taxes after approximately $168,600

Imposes an additional 1.2% Medicare Hospital Insurance tax on wages and self-employment income exceeding $400,000 for individuals ($500,000 for joint filers)

Increases the net investment income tax rate from 3.8% to 17.4% for trusts and estates, and adds a 13.6% surtax on investment income for individuals earning above the $400,000/$500,000 thresholds

Expands the net investment income tax base to include certain foreign income from controlled foreign corporations and passive foreign investment companies

Directs new revenues to Social Security and Medicare trust funds: 71.3% to Old-Age and Survivors Insurance, 10.3% to Disability Insurance, and 28.7% to Federal Hospital Insurance, effective for taxable years beginning after December 31, 2025