A bill to amend the Internal Revenue Code of 1986 to apply inflation...
A bill to amend the Internal Revenue Code of 1986 to apply inflation adjustments to the additional hospital insurance tax on high income taxpayers.
SB5085 proposes to change the Internal Revenue Code by adjusting the additional hospital insurance tax for high-income taxpayers to account for inflation. This means that the tax rate, which is already higher for those with higher incomes, would be updated periodically to reflect changes in the cost of living. This bill aims to ensure that the tax remains fair and effective over time.
This bill would primarily affect high-income individuals who are subject to the additional hospital insurance tax. By updating the tax rate to account for inflation, it would help ensure that the tax burden does not unfairly increase over time for these taxpayers. The changes would not affect most middle and lower-income earners, as the additional tax only applies to a portion of their income above certain thresholds.
As of the last update on July 22, 2026, SB5085 has been introduced and referred to the Committee on Finance for further review. The bill is in the early stages of the legislative process and has not yet been voted on by the Senate.
