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Bill > HR7863


US HR7863

Paying a Fair Share Act of 2019


summary

Introduced
07/30/2020
In Committee
07/30/2020
Crossed Over
Passed
Dead
12/31/2020

Introduced Session

116th Congress

Bill Summary

To reduce the deficit by imposing a minimum effective tax rate for high-income taxpayers. This bill requires an individual taxpayer whose adjusted gross income exceeds $1 million (high-income taxpayer) to pay a minimum tax rate of 30% of the excess of the taxpayer's adjusted gross income over the taxpayer's modified charitable contribution deduction for the taxable year (tentative fair share tax). The amount of the tax is the excess (if any) of the tentative fair share tax over the excess of (1) the sum of the taxpayer's regular tax liability, the alternative minimum tax (AMT) amount, and the payroll tax for the taxable year; over (2) certain tax credits. The bill provides for a phase-in of such tax and requires an inflation adjustment to the $1 million income threshold for taxable years beginning after 2020. The bill also expresses the sense of the House of Representatives that Congress should enact tax reform that repeals unfair and unnecessary tax loopholes and expenditures, simplifies the tax system, and makes sure that the wealthiest taxpayers pay a fair share of taxes.

AI Summary

This bill, the Paying a Fair Share Act of 2019, aims to reduce the deficit by imposing a minimum effective tax rate of 30% on high-income taxpayers, defined as individuals with an adjusted gross income (AGI) exceeding $1 million (adjusted for inflation after 2020). The bill requires these high-income taxpayers to pay a "fair share tax," which is the excess (if any) of the tentative fair share tax (30% of the taxpayer's AGI minus their modified charitable contribution deduction) over the sum of their regular tax liability, alternative minimum tax, and payroll tax, less certain tax credits. The bill provides for a phase-in of this tax and expresses the sense of the House that Congress should enact tax reform to repeal unfair and unnecessary tax loopholes and expenditures, simplify the tax system, and ensure that the wealthiest taxpayers pay a fair share of taxes.

Committee Categories

Budget and Finance

Sponsors (6)

Last Action

Referred to the Subcommittee on Select Revenue Measures. (on 07/30/2020)

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