The proposal would ensure owners of certain “pass-through” businesses would pay the 3.8% net investment income tax to fund health care and would apply to individuals earning more than $400,000 a year and jointly earning more than $500,000 $. According to a US Treasury report, Medicare is expected to be insolvent by 2028 without any changes. That provision is part of a broader package Senate Democrats are working to complete, which would require support from all 50 Democratic senators and be able to bypass Senate filibustering using a specialized budget process called reconciliation. Previous negotiations on the more far-reaching Build Back Better plan collapsed in February. That would be a reduction in the Democrats’ previous proposal. On Wednesday, Schumer introduced an agreement that allows Medicare to negotiate prescription drug prices. The two other key provisions of this current deal — energy and taxes — are still being negotiated by moderate Democratic Sen. Joe Manchin of West Virginia and Schumer. CNN previously reported that Schumer privately told his caucus he wants to file a bill before the August recess if he can strike a deal with Manchin. Recent moves this week by Schumer signal his commitment to try to move forward with a bill as early as July, according to a source familiar with his thinking.
