Us Congress 2025-2026 Regular Session

Us Congress Senate Bill SB1243 Compare Versions

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Old	New	Differences
1	1	II
2	2	119THCONGRESS
3	3	1
4	4	STSESSION S. 1243
5	5	To ensure high-income earners pay a fair share of Federal taxes.
6	6	IN THE SENATE OF THE UNITED STATES
7	7	APRIL1 (legislative day, MARCH31), 2025
8	8	Mr. W
9	9	HITEHOUSE(for himself, Mr. MERKLEY, Mr. BLUMENTHAL, Mr. VAN
10	10	H
11	11	OLLEN, Mr. DURBIN, Ms. KLOBUCHAR, Mr. REED, Ms. HIRONO, Mr.
12	12	S
13	13	ANDERS, Ms. BALDWIN, Ms. WARREN, Mr. BOOKER, Mr. WELCH, Ms.
14	14	S
15	15	MITH, and Mr. MARKEY) introduced the following bill; which was read
16	16	twice and referred to the Committee on Finance
17	17	A BILL
18	18	To ensure high-income earners pay a fair share of Federal
19	19	taxes.
20	20	Be it enacted by the Senate and House of Representa-1
21	21	tives of the United States of America in Congress assembled, 2
22	22	SECTION 1. SHORT TITLE. 3
23	23	This Act may be cited as the ‘‘Paying a Fair Share 4
24	24	Act of 2025’’. 5
25	25	SEC. 2. FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS. 6
26	26	(a) I
27	27	NGENERAL.—Subchapter A of chapter 1 of the 7
28	28	Internal Revenue Code of 1986 is amended by adding at 8
29	29	the end the following new part: 9
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32	32	•S 1243 IS
33	33	‘‘PART VIII—FAIR SHARE TAX ON HIGH-INCOME 1
34	34	TAXPAYERS 2
35	35	‘‘Sec. 59B. Fair share tax.
36	36	‘‘SEC. 59B. FAIR SHARE TAX.
37	37	3
38	38	‘‘(a) G
39	39	ENERALRULE.— 4
40	40	‘‘(1) P
41	41	HASE-IN OF TAX.—In the case of any 5
42	42	high-income taxpayer, there is hereby imposed for a 6
43	43	taxable year (in addition to any other tax imposed 7
44	44	by this subtitle) a tax equal to the product of— 8
45	45	‘‘(A) the amount determined under para-9
46	46	graph (2), and 10
47	47	‘‘(B) a fraction (not to exceed 1)— 11
48	48	‘‘(i) the numerator of which is the ex-12
49	49	cess of— 13
50	50	‘‘(I) the taxpayer’s adjusted 14
51	51	gross income, over 15
52	52	‘‘(II) the dollar amount in effect 16
53	53	under subsection (c)(1), and 17
54	54	‘‘(ii) the denominator of which is the 18
55	55	dollar amount in effect under subsection 19
56	56	(c)(1). 20
57	57	‘‘(2) A
58	58	MOUNT OF TAX.—The amount of tax de-21
59	59	termined under this paragraph is an amount equal 22
60	60	to the excess (if any) of— 23
61	61	‘‘(A) the tentative fair share tax for the 24
62	62	taxable year, over 25
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65	65	•S 1243 IS
66	66	‘‘(B) the excess of— 1
67	67	‘‘(i) the sum of— 2
68	68	‘‘(I) the regular tax liability (as 3
69	69	defined in section 26(b)) for the tax-4
70	70	able year, determined without regard 5
71	71	to any tax liability determined under 6
72	72	this section, 7
73	73	‘‘(II) the tax imposed by section 8
74	74	55 for the taxable year, plus 9
75	75	‘‘(III) the payroll tax for the tax-10
76	76	able year, over 11
77	77	‘‘(ii) the credits allowable under part 12
78	78	IV of subchapter A (other than sections 13
79	79	27(a), 31, and 34). 14
80	80	‘‘(b) T
81	81	ENTATIVEFAIRSHARETAX.—For purposes 15
82	82	of this section— 16
83	83	‘‘(1) I
84	84	N GENERAL.—The tentative fair share tax 17
85	85	for the taxable year is 30 percent of the excess of— 18
86	86	‘‘(A) the adjusted gross income of the tax-19
87	87	payer, over 20
88	88	‘‘(B) the modified charitable contribution 21
89	89	deduction for the taxable year. 22
90	90	‘‘(2) M
91	91	ODIFIED CHARITABLE CONTRIBUTION 23
92	92	DEDUCTION.—For purposes of paragraph (1)— 24
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95	95	•S 1243 IS
96	96	‘‘(A) IN GENERAL.—The modified chari-1
97	97	table contribution deduction for any taxable 2
98	98	year is an amount equal to the amount which 3
99	99	bears the same ratio to the deduction allowable 4
100	100	under section 170 (section 642(c) in the case of 5
101	101	a trust or estate) for such taxable year as— 6
102	102	‘‘(i) the amount of itemized deduc-7
103	103	tions allowable under the regular tax (as 8
104	104	defined in section 55) for such taxable 9
105	105	year, determined after the application of 10
106	106	section 68, bears to 11
107	107	‘‘(ii) such amount, determined before 12
108	108	the application of section 68. 13
109	109	‘‘(B) T
110	110	AXPAYER MUST ITEMIZE .—In the 14
111	111	case of any individual who does not elect to 15
112	112	itemize deductions for the taxable year, the 16
113	113	modified charitable contribution deduction shall 17
114	114	be zero. 18
115	115	‘‘(c) H
116	116	IGH-INCOMETAXPAYER.—For purposes of this 19
117	117	section— 20
118	118	‘‘(1) I
119	119	N GENERAL.—The term ‘high-income tax-21
120	120	payer’ means, with respect to any taxable year, any 22
121	121	taxpayer (other than a corporation) with an adjusted 23
122	122	gross income for such taxable year in excess of 24
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125	125	•S 1243 IS
126	126	$1,000,000 (50 percent of such amount in the case 1
127	127	of a married individual who files a separate return). 2
128	128	‘‘(2) I
129	129	NFLATION ADJUSTMENT .— 3
130	130	‘‘(A) I
131	131	N GENERAL.—In the case of a tax-4
132	132	able year beginning after 2025, the $1,000,000 5
133	133	amount under paragraph (1) shall be increased 6
134	134	by an amount equal to— 7
135	135	‘‘(i) such dollar amount, multiplied by 8
136	136	‘‘(ii) the cost-of-living adjustment de-9
137	137	termined under section 1(f)(3) for the cal-10
138	138	endar year in which the taxable year be-11
139	139	gins, determined by substituting ‘calendar 12
140	140	year 2024’ for ‘calendar year 2016’ in sub-13
141	141	paragraph (A)(ii) thereof. 14
142	142	‘‘(B) R
143	143	OUNDING.—If any amount as ad-15
144	144	justed under subparagraph (A) is not a multiple 16
145	145	of $10,000, such amount shall be rounded to 17
146	146	the next lowest multiple of $10,000. 18
147	147	‘‘(d) P
148	148	AYROLLTAX.—For purposes of this section, 19
149	149	the payroll tax for any taxable year is an amount equal 20
150	150	to the excess of— 21
151	151	‘‘(1) the taxes imposed on the taxpayer under 22
152	152	sections 1401, 1411, 3101, 3201, and 3211(a) (to 23
153	153	the extent such tax is attributable to the rate of tax 24
154	154	in effect under section 3101) with respect to such 25
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157	157	•S 1243 IS
158	158	taxable year or wages or compensation received dur-1
159	159	ing such taxable year, over 2
160	160	‘‘(2) the deduction allowable under section 3
161	161	164(f) for such taxable year. 4
162	162	‘‘(e) S
163	163	PECIALRULE FORESTATES ANDTRUSTS.— 5
164	164	For purposes of this section, in the case of an estate or 6
165	165	trust, adjusted gross income shall be computed in the 7
166	166	manner described in section 67(e). 8
167	167	‘‘(f) N
168	168	OTTREATED ASTAXIMPOSED BYTHISCHAP-9
169	169	TER FORCERTAINPURPOSES.—The tax imposed under 10
170	170	this section shall not be treated as tax imposed by this 11
171	171	chapter for purposes of determining the amount of any 12
172	172	credit under this chapter (other than the credit allowed 13
173	173	under section 27(a)) or for purposes of section 55.’’. 14
174	174	(b) C
175	175	LERICALAMENDMENT.—The table of parts for 15
176	176	subchapter A of chapter 1 of the Internal Revenue Code 16
177	177	of 1986 is amended by adding at the end the following 17
178	178	new item: 18
179	179	‘‘PARTVIII—FAIRSHARETAX ONHIGH-INCOMETAXPAYERS’’.
180	180	(c) EFFECTIVEDATE.—The amendments made by 19
181	181	this section shall apply to taxable years beginning after 20
182	182	December 31, 2024. 21
183	183	SEC. 3. SENSE OF THE SENATE REGARDING TAX REFORM. 22
184	184	It is the sense of the Senate that— 23
185	185	(1) Congress should enact tax reform that re-24
186	186	peals unfair and unnecessary tax loopholes and ex-25
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189	189	•S 1243 IS
190	190	penditures, simplifies the system for millions of tax-1
191	191	payers and businesses, and makes sure that the 2
192	192	wealthiest taxpayers pay a fair share; and 3
193	193	(2) this Act is an interim step that can be done 4
194	194	quickly and serve as a floor on taxes for the highest- 5
195	195	income taxpayers, cut the deficit by billions of dol-6
196	196	lars a year, and help encourage more fundamental 7
197	197	reform of the tax system. 8
198	198	Æ
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