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S.2230 - Paying a Fair Share Act of 2012
A bill to reduce the deficit by imposing a minimum effective tax rate for high-income taxpayers.
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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
SECTION 1. SHORT TITLE.
SEC. 2. FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS.
‘PART VII--FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS
‘SEC. 59B. FAIR SHARE TAX.
‘(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) 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
‘(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
‘(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
‘(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
‘(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
‘(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
‘Part VII--Fair Share Tax on High-Income Taxpayers’.
SEC. 3. SENSE OF THE SENATE REGARDING TAX REFORM.
(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