Legislation Would Protect Medicare and Social Security by Making the Wealthy Pay Their Fair Share
WASHINGTON – Senator Ruben Gallego (D-AZ) backed the Medicare and Social Security Fair Share Act, legislation that would extend the solvency of Medicare and Social Security by reversing inequities in the tax system so the wealthiest Americans to pay their fair share. The bill would ensure both programs can continue to pay full benefits for at least the next 75 years. Without action, Social Security and Medicare trust funds are projected to become insolvent in the next 10–15 years, threatening benefits for current and future recipients.
“Arizonans pay into Medicare and Social Security their entire working lives, and they deserve to know these programs will be there when they need them,” said Senator Gallego. “This bill keeps our promises to seniors and working families by ensuring the wealthy finally pay their fair share. I’m proud to support it and will keep fighting to protect the benefits Arizona families have earned.”
Medicare and Social Security are essential to retirement security and economic stability for millions of Americans. In 2022, Social Security alone kept nearly 29 million people out of poverty, while Medicare provides critical health care coverage to over 65 million Americans.
Despite the bedrock importance of these programs, both are at risk of being unable to fully pay out benefits within the next 15 years. Without new revenue, the Hospital Insurance trust fund and the Old Age and Survivors Insurance trust fund are expected to become insolvent in 2036 and 2033, respectively.
The Medicare and Social Security Fair Share Act would:
- Significantly extend Social Security and Medicare solvency by at least 75 years, according to analyses from the Centers for Medicare and Medicaid Services Office of the Actuary and the Social Security Administration’s Office of the Chief Actuary.
- Require taxpayers making over $400,000 per year to contribute a fairer share to Social Security by lifting the Social Security tax cap to ensure that no matter the source of their income, high-income taxpayers would pay the same tax rate on their income exceeding that threshold.
- Require taxpayers with incomes above $400,000 to contribute more to Medicare by increasing the rate for income above $400,000 by 1.2 percent, and ensure that wealthy owners of pass-through businesses like hedge funds and private equity firms with more than $400,000 in annual income cannot avoid Medicare taxes.
The bicameral legislation was introduced by Senator Sheldon Whitehouse (D-RI) and Congressman Brendan Boyle (D-PA) and endorsed by Alliance for Retired Americans, American Federation of Government Employees, American Federation of Labor and Congress of Industrial Organizations, American Federation of State, County and Municipal Employees (AFSCME), American Federation of Teachers, Americans for Tax Fairness, Center for Medicare Advocacy, Committee for a Responsible Federal Budget, Communications Workers of America, Doctors for America, Families USA, Groundwork Collaborative, International Federation of Professional and Technical Engineers, Main Street Alliance, Mary’s Center, MomsRising, National Committee to Preserve Social Security and Medicare, National Council on Aging, National Education Association, National Women’s Law Center Action Fund, NETWORK Lobby for Catholic Social Justice, People’s Action, Public Citizen, Revolving Door Project, Social Security Works, and Teamsters.
The full text of the legislation is available HERE.
5/13/25