Phase 1: Enactment & build · Step 1.12

Set up the new taxes

Months 0–18 · Treasury, IRS, SSADiscuss this step

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Task 1.12.2 of 6

Self-employed: apply the employer rate to net SE earnings above $50,000 via Schedule SE.

Who does it

IRS

When

Month 12

Trade-off

Exempting self-employment earnings below $50,000 protects gig workers but creates a cliff above the threshold.

Part of: Set up the new taxes

IRS and Treasury implement the employer health payroll tax (7.5%), the household income-based premium (4.0% above an exemption), and the top-end surtaxes, each phased in with the enrollment waves.

This step changes 6 existing laws, programs, or institutions. See the list.