S 2230 PCSCommentsClose CommentsPermalink

Calendar No. 339CommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

2d SessionCommentsClose CommentsPermalink

S. 2230CommentsClose CommentsPermalink

To reduce the deficit by imposing a minimum effective tax rate for high-income taxpayers.CommentsClose CommentsPermalink

IN THE SENATE OF THE UNITED STATESCommentsClose CommentsPermalink

March 22, 2012CommentsClose CommentsPermalink

Mr. WHITEHOUSE (for himself, Mr. AKAKA, Mr. BEGICH, Mr. LEAHY, Mr. HARKIN, Mr. BLUMENTHAL, Mr. SANDERS, Mr. SCHUMER, Mr. REED, Mr. ROCKEFELLER, Mr. FRANKEN, Mrs. BOXER, Mr. DURBIN, and Mr. LEVIN) introduced the following bill; which was read the first timeCommentsClose CommentsPermalink

March 26, 2012CommentsClose CommentsPermalink

Read the second time and placed on the calendarCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To reduce the deficit by imposing a minimum effective tax rate for high-income taxpayers.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Paying a Fair Share Act of 2012’.CommentsClose CommentsPermalink

SEC. 2. FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS.

(a) In General- Subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new part:CommentsClose CommentsPermalink

‘PART VII--FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS

‘Sec. 59B. Fair share tax.CommentsClose CommentsPermalink

‘SEC. 59B. FAIR SHARE TAX.

‘(a) General Rule-CommentsClose CommentsPermalink





‘(1) PHASE-IN OF TAX- In the case of any high-income taxpayer, there is hereby imposed for a taxable year (in addition to any other tax imposed by this subtitle) a tax equal to the product of--CommentsClose CommentsPermalink





‘(A) the amount determined under paragraph (2), andCommentsClose CommentsPermalink





‘(B) a fraction (not to exceed 1)--CommentsClose CommentsPermalink





‘(i) the numerator of which is the excess of--CommentsClose CommentsPermalink





‘(I) the taxpayer’s adjusted gross income, overCommentsClose CommentsPermalink





‘(II) the dollar amount in effect under subsection (c)(1), andCommentsClose CommentsPermalink





‘(ii) the denominator of which is the dollar amount in effect under subsection (c)(1).CommentsClose CommentsPermalink





‘(2) AMOUNT OF TAX- The amount of tax determined under this paragraph is an amount equal to the excess (if any) of--CommentsClose CommentsPermalink





‘(A) the tentative fair share tax for the taxable year, overCommentsClose CommentsPermalink





‘(B) the excess of--CommentsClose CommentsPermalink





‘(i) the sum of--CommentsClose CommentsPermalink





‘(I) the regular tax liability (as defined in section 26(b)) for the taxable year,CommentsClose CommentsPermalink





‘(II) the tax imposed by section 55 for the taxable year, plusCommentsClose CommentsPermalink





‘(III) the payroll tax for the taxable year, overCommentsClose CommentsPermalink





‘(ii) the credits allowable under part IV of subchapter A (other than sections 27(a), 31, and 34).CommentsClose CommentsPermalink





‘(b) Tentative Fair Share Tax- For purposes of this section--CommentsClose CommentsPermalink





‘(1) IN GENERAL- The tentative fair share tax for the taxable year is 30 percent of the excess of--CommentsClose CommentsPermalink





‘(A) the adjusted gross income of the taxpayer, overCommentsClose CommentsPermalink





‘(B) the modified charitable contribution deduction for the taxable year.CommentsClose CommentsPermalink





‘(2) MODIFIED CHARITABLE CONTRIBUTION DEDUCTION- For purposes of paragraph (1)--CommentsClose CommentsPermalink





‘(A) IN GENERAL- The modified charitable contribution deduction for any taxable year is an amount equal to the amount which bears the same ratio to the deduction allowable under section 170 (section 642(c) in the case of a trust or estate) for such taxable year as--CommentsClose CommentsPermalink





‘(i) the amount of itemized deductions allowable under the regular tax (as defined in section 55) for such taxable year, determined after the application of section 68, bears toCommentsClose CommentsPermalink





‘(ii) such amount, determined before the application of section 68.CommentsClose CommentsPermalink





‘(B) TAXPAYER MUST ITEMIZE- In the case of any individual who does not elect to itemize deductions for the taxable year, the modified charitable contribution deduction shall be zero.CommentsClose CommentsPermalink





‘(c) High-Income Taxpayer- For purposes of this section--CommentsClose CommentsPermalink





‘(1) IN GENERAL- The term ‘high-income taxpayer’ means, with respect to any taxable year, any taxpayer (other than a corporation) with an adjusted gross income for such taxable year in excess of $1,000,000 (50 percent of such amount in the case of a married individual who files a separate return).CommentsClose CommentsPermalink





‘(2) INFLATION ADJUSTMENT-CommentsClose CommentsPermalink





‘(A) IN GENERAL- In the case of a taxable year beginning after 2013, the $1,000,000 amount under paragraph (1) shall be increased by an amount equal to--CommentsClose CommentsPermalink





‘(i) such dollar amount, multiplied byCommentsClose CommentsPermalink





‘(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2012’ for ‘calendar year 1992’ in subparagraph (B) thereof.CommentsClose CommentsPermalink





‘(B) ROUNDING- If any amount as adjusted under subparagraph (A) is not a multiple of $10,000, such amount shall be rounded to the next lowest multiple of $10,000.CommentsClose CommentsPermalink





‘(d) Payroll Tax- For purposes of this section, the payroll tax for any taxable year is an amount equal to the excess of--CommentsClose CommentsPermalink





‘(1) the taxes imposed on the taxpayer under sections 1401, 1411, 3101, 3201, and 3211(a) (to the extent such taxes are attributable to the rate of tax in effect under section 3101) with respect to such taxable year or wages or compensation received during the taxable year, overCommentsClose CommentsPermalink





‘(2) the deduction allowable under section 164(f) for such taxable year.CommentsClose CommentsPermalink





‘(e) Special Rule for Estates and Trusts- For purposes of this section, in the case of an estate or trust, adjusted gross income shall be computed in the manner described in section 67(e).CommentsClose CommentsPermalink





‘(f) Not Treated as Tax Imposed by This Chapter for Certain Purposes- The tax imposed under this section shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit under this chapter (other than the credit allowed under section 27(a)) or for purposes of section 55.’.CommentsClose CommentsPermalink





(b) Conforming Amendment- Section 26(b)(2) of the Internal Revenue Code of 1986 is amended by redesignating subparagraphs (C) through (X) as subparagraphs (D) through (Y), respectively, and by inserting after subparagraph (B) the following new subparagraph:CommentsClose CommentsPermalink





‘(C) section 59B (relating to fair share tax),’.CommentsClose CommentsPermalink





(c) Clerical Amendment- The table of parts for subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:CommentsClose CommentsPermalink

‘Part VII--Fair Share Tax on High-Income Taxpayers’.

(d) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2012.CommentsClose CommentsPermalink

SEC. 3. SENSE OF THE SENATE REGARDING TAX REFORM.

It is the sense of the Senate that--CommentsClose CommentsPermalink





(1) Congress should enact tax reform that repeals unfair and unnecessary tax loopholes and expenditures, simplifies the system for millions of taxpayers and businesses (including by eliminating the alternative minimum tax for middle-class Americans), and makes sure that the wealthiest taxpayers pay a fair share; andCommentsClose CommentsPermalink





(2) this Act is an interim step that can be done quickly and serve as a floor on taxes for the highest-income taxpayers, cut the deficit by billions of dollars a year, and help encourage more fundamental reform of the tax system.CommentsClose CommentsPermalink

Calendar No. 339CommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

2d SessionCommentsClose CommentsPermalink

S. 2230CommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To reduce the deficit by imposing a minimum effective tax rate for high-income taxpayers.CommentsClose CommentsPermalink

March 26, 2012CommentsClose CommentsPermalink

Read the second time and placed on the calendarCommentsClose CommentsPermalink