Wealthiest Americans would pay a new minimum tax on high incomes.
A new 'Fair Share Tax' would set a minimum 30% tax rate for individuals, estates, and trusts with adjusted gross incomes (your income before certain deductions) over $1,000,000. If their current federal income, alternative minimum (a separate tax calculation for some high-income earners), and payroll taxes (taxes for Social Security and Medicare) are below this 30% floor, they would pay an additional amount. This new tax would also be gradually phased in for those just above the income threshold, starting for tax years after December 31, 2024.
Today, high-income taxpayers pay federal income, alternative minimum (a separate tax calculation for some high-income earners), and payroll taxes (taxes for Social Security and Medicare), with various deductions and credits. If this bill became law, individuals, estates, and trusts with adjusted gross incomes (your income before certain deductions) over $1,000,000 (or $500,000 for married individuals filing separately) would pay an additional 'Fair Share Tax'. This tax would apply if their current federal taxes fall below a 30% minimum tax floor, after certain deductions. This new tax would also be gradually phased in. It would apply to tax years beginning after December 31, 2024.
S 1243 · 119th Congress · AI Summary by gemini-2.5-flash · 8/10
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