I 

114TH CONGRESS 

1ST SESSION H. R. 389 

To amend the Internal Revenue Code of 1986 to impose increased rates 

of tax with respect to taxpayers with more than $1,000,000 taxable 

income, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 14, 2015 

Ms. SCHAKOWSKY (for herself, Mr. CONYERS, Mr. CUMMINGS, Mr. ELLISON, 

Mr. GRIJALVA, Mr. GUTIE ́RREZ, Ms. LEE, Mr. MCDERMOTT, Mr. NADLER, and Ms. NORTON) introduced the following bill; which was referred 

to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to impose 

increased rates of tax with respect to taxpayers with 

more than $1,000,000 taxable income, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Fairness in Taxation 

5 Act of 2015’’. 


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1 SEC. 2. INCREASED TAX RATES FOR TAXPAYERS WITH 

2 MORE THAN $1,000,000 TAXABLE INCOME. 

3 (a) IN GENERAL.— 

4 (1) MARRIED INDIVIDUALS FILING JOINT RE5 TURNS AND SURVIVING SPOUSES.—The table con6 tained in subsection (a) of section 1 of the Internal 

7 Revenue Code of 1986 is amended to read as fol8 lows: 

If taxable income is: The tax is: 

Not over $17,850 .......................... 10% of taxable income. 

Over $17,850 but not over 

$72,500.

$1,785, plus 15% of the excess over 

$17,850. 

Over $72,500 but not over 

$146,400.

$9,982.50, plus 25% of the excess 

over $72,500. 

Over $146,400 but not over 

$223,050.

$28,457.50, plus 28% of the excess 

over $146,400. 

Over $223,050 but not over 

$398,350.

$49,919.50, plus 33% of the excess 

over $223,050. 

Over $398,350 but not over 

$450,000.

$107,768.50, plus 35% of the excess 

over $398,350. 

Over $450,000 but not over 

$1,000,000.

$125,846, plus 39.6% of the excess 

over $450,000. 

Over $1,000,000 but not over 

$10,000,000.

$343,646, plus 45% of the excess 

over $1,000,000. 

Over $10,000,000 but not over 

$20,000,000.

$4,393,646, plus 46% of the excess 

over $10,000,000. 

Over $20,000,000 but not over 

$100,000,000.

$8,993,646, plus 47% of the excess 

over $20,000,000. 

Over $100,000,000 but not over 

$1,000,000,000.

$46,593,646, plus 48% of the excess 

over $100,000,000. 

Over $1,000,000,000 ..................... $478,593,646, plus 49% over the excess over $1,000,000,000. 

9 (2) HEADS OF HOUSEHOLD.—The table con10 tained in subsection (b) of section 1 of such Code is 

11 amended to read as follows: 

If taxable income is: The tax is: 

Not over $12,750 .......................... 10% of taxable income. 

Over $12,750 but not over 

$48,600.

$1,275, plus 15% of the excess over 

$12,750. 

Over $48,600 but not over 

$125,450.

$6,652.50, plus 25% of the excess 

over $48,600. 


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•HR 389 IH

If taxable income is: The tax is: 

Over $125,450 but not over 

$203,150.

$25,865, plus 28% of the excess over 

$125,450. 

Over $203,150 but not over 

$398,350.

$47,621, plus 33% of the excess over 

$203,150. 

Over $398,350 but not over 

$425,000.

$112,037, plus 35% of the excess 

over $398,350. 

Over $425,000 but not over 

$1,000,000.

$121,364.50, plus 39.6% of the excess over $425,000. 

Over $1,000,000 but not over 

$10,000,000.

$349,064.50, plus 45% of the excess 

over $1,000,000. 

Over $10,000,000 but not over 

$20,000,000.

$4,399,064.50, plus 46% of the excess over $10,000,000. 

Over $20,000,000 but not over 

$100,000,000.

$8,999,064.50, plus 47% of the excess over $20,000,000. 

Over $100,000,000 but not over 

$1,000,000,000.

$46,599,064.50, plus 48% of the excess over $100,000,000. 

Over $1,000,000,000 ..................... $478,599,064.50, plus 49% of the excess over $1,000,000,000. 

1 (3) UNMARRIED INDIVIDUALS (OTHER THAN

2 SURVIVING SPOUSES AND HEADS OF HOUSE3 HOLDS).—The table contained in subsection (c) of 

4 section 1 of such Code is amended to read as fol5 lows: 

If taxable income is: The tax is: 

Not over $8,925 ............................ 10% of taxable income. 

Over $8,925 but not over $36,250 $892.50, plus 15% of the excess over 

$8,925. 

Over $36,250 but not over 

$87,850.

$4,991.25, plus 25% of the excess 

over $36,250. 

Over $87,850 but not over 

$183,250.

$17,891.25, plus 28% of the excess 

over $87,850. 

Over $183,250 but not over 

$398,350.

$44,603.25, plus 33% of the excess 

over $183,250. 

Over $398,350 but not over 

$400,000.

$115,586.25, plus 35% of the excess 

over $398,350. 

Over $400,000 but not over 

$1,000,000.

$116,163.75, plus 39.6% of the excess over $400,000. 

Over $1,000,000 but not over 

$10,000,000.

$353,763.75, plus 45% of the excess 

over $1,000,000. 

Over $10,000,000 but not over 

$20,000,000.

$4,403,763.75, plus 46% of the excess over $10,000,000. 

Over $20,000,000 but not over 

$100,000,000.

$9,003,763.75, plus 47% of the excess over $20,000,000. 

Over $100,000,000 but not over 

$1,000,000,000.

$46,603,763.75, plus 48% of the excess over $100,000,000. 

Over $1,000,000,000 ..................... $478,603,763.75, plus 49% of the excess over $1,000,000,000. 


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1 (4) MARRIED INDIVIDUALS FILING SEPARATE

2 RETURNS.—The table contained in subsection (d) of 

3 section 1 of such Code is amended to read as fol4 lows: 

If taxable income is: The tax is: 

Not over $8,925 ............................ 10% of taxable income. 

Over $8,925 but not over $36,250 $892.50, plus 15% of the excess over 

$8,925. 

Over $36,250 but not over 

$73,200.

$4,991.25, plus 25% of the excess 

over $36,250. 

Over $73,200 but not over 

$111,525.

$14,228.75, plus 28% of the excess 

over $73,200. 

Over $111,525 but not over 

$199,175.

$24,959.75, plus 33% of the excess 

over $111,525. 

Over $199,175 but not over 

$225,000.

$53,884.25, plus 35% of the excess 

over $199,175 

Over $225,000 but not over 

$500,000.

$62,923, plus 39.6% of the excess 

over $225,000. 

Over $500,000 but not over 

$5,000,000.

$171,823, plus 45% of the excess 

over $500,000. 

Over $5,000,000 but not over 

$10,000,000.

$2,196,823, plus 46% of the excess 

over $5,000,000. 

Over $10,000,000 but not over 

$50,000,000.

$4,496,823, plus 47% of the excess 

over $10,000,000. 

Over $50,000,000 but not over 

$500,000,000.

$23,296,823, plus 48% of the excess 

over $50,000,000. 

Over $500,000,000 ........................ $239,296,823, plus 49% of the excess 

over $500,000,000. 

5 (5) INFLATION ADJUSTMENT.—Subsection (f) 

6 of section 1 of such Code is amended by adding at 

7 the end the following new paragraph: 

8 ‘‘(9) SPECIAL RULE FOR TAXABLE YEARS BE9 GINNING AFTER 2015.—In prescribing the tables 

10 under paragraph (1) which apply with respect to 

11 taxable years beginning in a calendar year after 

12 2015, the cost-of-living adjustment under paragraph 

13 (3) shall be determined by substituting ‘2014’ for 

14 ‘1992’ in subparagraph (B) thereof.’’. 


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1 (6) CONFORMING AMENDMENT.—Section 1 of 

2 such Code is amended by striking subsection (i). 

3 (b) RECAPTURE OF LOWER CAPITAL GAINS RATES

4 FOR INDIVIDUALS SUBJECT TO ADDED RATE BRACK5 ETS.— 

6 (1) IN GENERAL.—Section 1 of such Code is 

7 amended by adding at the end the following new 

8 subsection: 

9 ‘‘(j) SPECIAL RULE FOR CAPITAL GAINS IN CASE OF

10 TAXABLE INCOME SUBJECT TO AT LEAST 45-PERCENT

11 RATE BRACKET.—If for the taxable year a taxpayer has 

12 taxable income in excess of the minimum dollar amount 

13 for the 45-percent rate bracket and has a net capital gain, 

14 then— 

15 ‘‘(1) the tax imposed by this section for the tax16 able year with respect to such excess shall be deter17 mined without regard to subsection (h), and 

18 ‘‘(2) the amount of net capital gain of the tax19 payer taken into account for the taxable year under 

20 subsection (h) shall be reduced by the lesser of— 

21 ‘‘(A) such excess, or 

22 ‘‘(B) the net capital gain for the taxable 

23 year. 

24 Any reduction in net capital gain under the pre25 ceding sentence shall be allocated between adjusted 


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1 net capital gain, unrecaptured 1250 gain, and sec2 tion 1202 gain in amounts proportionate to the 

3 amounts of each such gain. Any term used in this 

4 subsection which is also used in subsection (h) shall 

5 have the meaning given such term in subsection 

6 (h).’’. 

7 (2) CONFORMING AMENDMENT.—Paragraph (1) 

8 of section 1(h) of such Code is amended by striking 

9 ‘‘If a taxpayer has’’ and inserting ‘‘Except to the ex10 tent provided in subsection (j), if a taxpayer has’’. 

11 (c) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to taxable years beginning after 

13 December 31, 2014. 

Æ 


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