“A bill 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 IRC §59B on high-income taxpayers (non-corporate taxpayers with adjusted gross income (AGI) exceeding $1 million ($500,000 for married individuals filing separately), inflation-adjusted after 2025 using 2024 as the base year) for taxable years beginning after December 31, 2024. The tax equals the product of (1) the excess of a tentative fair share tax—equal to 30% of AGI minus a modified charitable contribution deduction (prorated for itemizers based on overall itemized deductions after the Pease limitation; zero for non-itemizers)—over the sum of regular tax liability, alternative minimum tax under §55, and payroll taxes (under §§1401, 1411, 3101, 3201, and 3211(a)) minus certain credits (under part IV other than §§27(a), 31, and 34); and (2) a phase-in fraction equal to the excess of AGI over the threshold divided by the threshold (capped at 1). (Thus, the tax ensures such taxpayers' combined tax liability reaches at least 30% of AGI net of the modified charitable deduction.) The tax is not treated as a tax imposed by chapter 1 for credit or alternative minimum tax purposes, with special AGI computation rules for estates and trusts.
This section expresses the sense of the Senate that (1) Congress should enact tax reform repealing unfair and unnecessary tax loopholes and expenditures, simplifying the system for millions of taxpayers and businesses, and ensuring that the wealthiest taxpayers pay a fair share; and (2) this Act is an interim step establishing a floor on taxes for highest-income taxpayers, reducing the deficit by billions of dollars annually, and encouraging fundamental tax reform.