“To ensure high-income earners pay a fair share of Federal taxes.”
No CRS summary available for this bill.
This section establishes a new Fair Share Tax under a new IRC §59B on high-income taxpayers (non-corporate taxpayers with adjusted gross income (AGI) exceeding $1 million ($500,000 for married individuals filing separately returns), inflation-adjusted after 2025). The tax equals the lesser of (1) the excess of a tentative fair share tax—equal to 30% of AGI reduced only by a modified charitable contribution deduction (prorated for itemizers based on itemized deductions after the Pease limitation; zero for non-itemizers)—over the sum of regular tax liability, alternative minimum tax under IRC §55, and payroll taxes (under IRC §§1401, 1411, 3101, 3201, and 3211(a)) reduced by nonrefundable personal credits (other than IRC §§27(a), 31, and 34); and (2) such excess multiplied by a fraction equal to the portion of AGI exceeding the threshold. (Thus, the tax ensures total specified taxes equal at least 30% of AGI net of the modified charitable deduction, phased in above the threshold.) The tax applies to taxable years beginning after December 31, 2024; for estates and trusts, AGI is computed under IRC §67(e); and the tax is disregarded for most credits and IRC §55 purposes.
This section expresses the sense of the House of Representatives that Congress should enact tax reform repealing unfair and unnecessary tax loopholes and expenditures, simplifying the system for taxpayers and businesses, and ensuring the wealthiest taxpayers pay a fair share; and that this Act is an interim step serving as a floor on taxes for highest-income taxpayers, cutting the deficit by billions of dollars annually, and encouraging fundamental tax reform.