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US S2059

US S2059
Paying a Fair Share Act of 2012


summary

Introduced
In Committee
Crossed Over
Passed
Dead

Introduced Session

112th Congress

Bill Summary

Paying a Fair Share Act of 2012 - Amends the Internal Revenue Code to require an individual taxpayer whose adjusted gross income exceeds $1 million 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). Establishes the amount of such tax as 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. Provides for a phase-in of such tax. Requires an inflation adjustment to the $1 million income threshold for taxable years beginning after 2013. Expresses the sense of the Senate 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, titled the "Paying a Fair Share Act of 2012," aims to reduce the national deficit by requiring individuals with an adjusted gross income (AGI) exceeding $1 million to pay a minimum tax rate. Specifically, it introduces a "fair share tax" calculated as 30% of the amount by which a taxpayer's AGI exceeds their modified charitable contribution deduction. This new tax would be imposed in addition to existing taxes, including regular income tax, the alternative minimum tax (AMT), and payroll taxes, but would be reduced by certain tax credits. The bill outlines a phase-in period for this tax and includes an inflation adjustment for the $1 million AGI threshold for tax years after 2013. Additionally, it expresses the Senate's sentiment that Congress should pursue broader tax reform to eliminate loopholes, simplify the tax system, and ensure wealthy taxpayers contribute their fair share.

Committee Categories

Budget and Finance

Sponsors (12)

Last Action

Read twice and referred to the Committee on Finance. (on 02/01/2012)

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