Bill > S1243

This bill introduces a new "Fair Share Tax" targeting high-income taxpayers, specifically those with an adjusted gross income (AGI) over $1,000,000 (or $500,000 for married individuals filing separately). The tax is calculated as 30% of the taxpayer's AGI above a modified charitable contribution deduction, with a complex calculation that ensures the tax rate is phased in based on income levels. The tax is additional to existing tax liabilities and is designed to ensure wealthy individuals pay a minimum effective tax rate. The bill includes provisions for annual inflation adjustments to the income threshold and applies to tax years beginning after December 31, 2024. The tax calculation takes into account regular tax liability, alternative minimum tax, and payroll taxes, with specific rules for how charitable deductions and other credits are considered. The bill's legislative intent, as stated in Section 3, is to create an interim step toward broader tax reform by closing perceived tax loopholes and ensuring that the wealthiest taxpayers contribute what is considered their "fair share" of federal taxes, potentially reducing the national deficit in the process.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1243/all-info