Bill > S1652

This bill, the Paying a Fair Share Act of 2021, aims to ensure that high-income earners pay a fair share of federal taxes. The key provisions of the bill include: 1. Establishing a "Fair Share Tax" that applies an additional tax on high-income taxpayers (individuals with adjusted gross income exceeding $1 million, or $500,000 for married individuals filing separately), with the tax rate phasing in as their income increases. 2. Defining the "tentative fair share tax" as 30% of the taxpayer's adjusted gross income minus a modified charitable contribution deduction. 3. Providing an inflation adjustment to the $1 million income threshold, which will be increased annually based on the cost-of-living adjustment. 4. Specifying that the Fair Share Tax is not to be treated as a tax imposed under the Internal Revenue Code for the purposes of certain tax credits and the alternative minimum tax. The bill is intended as an interim step towards broader tax reform that would close unfair loopholes, simplify the tax system, and ensure the wealthiest taxpayers pay their fair share.