II 

Calendar No. 339 

112TH CONGRESS 

2D SESSION S. 2230 

To reduce the deficit by imposing a minimum effective tax rate for highincome taxpayers. 

IN THE SENATE OF THE UNITED STATES 

MARCH 22, 2012 

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 time 

MARCH 26, 2012 

Read the second time and placed on the calendar 

A BILL 

To reduce the deficit by imposing a minimum effective tax 

rate for high-income taxpayers. 

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 ‘‘Paying a Fair Share 

5 Act of 2012’’. 


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

2 (a) IN GENERAL.—Subchapter A of chapter 1 of the 

3 Internal Revenue Code of 1986 is amended by adding at 

4 the end the following new part: 

5 ‘‘PART VII—FAIR SHARE TAX ON HIGH-INCOME 

6 TAXPAYERS 

‘‘Sec. 59B. Fair share tax. 

7 ‘‘SEC. 59B. FAIR SHARE TAX. 

8 ‘‘(a) GENERAL RULE.— 

9 ‘‘(1) PHASE-IN OF TAX.—In the case of any 

10 high-income taxpayer, there is hereby imposed for a 

11 taxable year (in addition to any other tax imposed 

12 by this subtitle) a tax equal to the product of— 

13 ‘‘(A) the amount determined under para14 graph (2), and 

15 ‘‘(B) a fraction (not to exceed 1)— 

16 ‘‘(i) the numerator of which is the ex17 cess of— 

18 ‘‘(I) the taxpayer’s adjusted 

19 gross income, over 

20 ‘‘(II) the dollar amount in effect 

21 under subsection (c)(1), and 

22 ‘‘(ii) the denominator of which is the 

23 dollar amount in effect under subsection 

24 (c)(1). 


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1 ‘‘(2) AMOUNT OF TAX.—The amount of tax de2 termined under this paragraph is an amount equal 

3 to the excess (if any) of— 

4 ‘‘(A) the tentative fair share tax for the 

5 taxable year, over 

6 ‘‘(B) the excess of— 

7 ‘‘(i) the sum of— 

8 ‘‘(I) the regular tax liability (as 

9 defined in section 26(b)) for the tax10 able year, 

11 ‘‘(II) the tax imposed by section 

12 55 for the taxable year, plus 

13 ‘‘(III) the payroll tax for the tax14 able year, over 

15 ‘‘(ii) the credits allowable under part 

16 IV of subchapter A (other than sections 

17 27(a), 31, and 34). 

18 ‘‘(b) TENTATIVE FAIR SHARE TAX.—For purposes 

19 of this section— 

20 ‘‘(1) IN GENERAL.—The tentative fair share tax 

21 for the taxable year is 30 percent of the excess of— 

22 ‘‘(A) the adjusted gross income of the tax23 payer, over 

24 ‘‘(B) the modified charitable contribution 

25 deduction for the taxable year. 


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1 ‘‘(2) MODIFIED CHARITABLE CONTRIBUTION

2 DEDUCTION.—For purposes of paragraph (1)— 

3 ‘‘(A) IN GENERAL.—The modified chari4 table contribution deduction for any taxable 

5 year is an amount equal to the amount which 

6 bears the same ratio to the deduction allowable 

7 under section 170 (section 642(c) in the case of 

8 a trust or estate) for such taxable year as— 

9 ‘‘(i) the amount of itemized deduc10 tions allowable under the regular tax (as 

11 defined in section 55) for such taxable 

12 year, determined after the application of 

13 section 68, bears to 

14 ‘‘(ii) such amount, determined before 

15 the application of section 68. 

16 ‘‘(B) TAXPAYER MUST ITEMIZE.—In the 

17 case of any individual who does not elect to 

18 itemize deductions for the taxable year, the 

19 modified charitable contribution deduction shall 

20 be zero. 

21 ‘‘(c) HIGH-INCOME TAXPAYER.—For purposes of this 

22 section— 

23 ‘‘(1) IN GENERAL.—The term ‘high-income tax24 payer’ means, with respect to any taxable year, any 

25 taxpayer (other than a corporation) with an adjusted 


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1 gross income for such taxable year in excess of 

2 $1,000,000 (50 percent of such amount in the case 

3 of a married individual who files a separate return). 

4 ‘‘(2) INFLATION ADJUSTMENT.— 

5 ‘‘(A) IN GENERAL.—In the case of a tax6 able year beginning after 2013, the $1,000,000 

7 amount under paragraph (1) shall be increased 

8 by an amount equal to— 

9 ‘‘(i) such dollar amount, multiplied by 

10 ‘‘(ii) the cost-of-living adjustment de11 termined under section 1(f)(3) for the cal12 endar year in which the taxable year be13 gins, determined by substituting ‘calendar 

14 year 2012’ for ‘calendar year 1992’ in sub15 paragraph (B) thereof. 

16 ‘‘(B) ROUNDING.—If any amount as ad17 justed under subparagraph (A) is not a multiple 

18 of $10,000, such amount shall be rounded to 

19 the next lowest multiple of $10,000. 

20 ‘‘(d) PAYROLL TAX.—For purposes of this section, 

21 the payroll tax for any taxable year is an amount equal 

22 to the excess of— 

23 ‘‘(1) the taxes imposed on the taxpayer under 

24 sections 1401, 1411, 3101, 3201, and 3211(a) (to 

25 the extent such taxes are attributable to the rate of 


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1 tax in effect under section 3101) with respect to 

2 such taxable year or wages or compensation received 

3 during the taxable year, over 

4 ‘‘(2) the deduction allowable under section 

5 164(f) for such taxable year. 

6 ‘‘(e) SPECIAL RULE FOR ESTATES AND TRUSTS.— 

7 For purposes of this section, in the case of an estate or 

8 trust, adjusted gross income shall be computed in the 

9 manner described in section 67(e). 

10 ‘‘(f) NOT TREATED AS TAX IMPOSED BY THIS CHAP11 TER FOR CERTAIN PURPOSES.—The tax imposed under 

12 this section shall not be treated as tax imposed by this 

13 chapter for purposes of determining the amount of any 

14 credit under this chapter (other than the credit allowed 

15 under section 27(a)) or for purposes of section 55.’’. 

16 (b) CONFORMING AMENDMENT.—Section 26(b)(2) of 

17 the Internal Revenue Code of 1986 is amended by redesig18 nating subparagraphs (C) through (X) as subparagraphs 

19 (D) through (Y), respectively, and by inserting after sub20 paragraph (B) the following new subparagraph: 

21 ‘‘(C) section 59B (relating to fair share 

22 tax),’’. 

23 (c) CLERICAL AMENDMENT.—The table of parts for 

24 subchapter A of chapter 1 of the Internal Revenue Code 


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1 of 1986 is amended by adding at the end the following 

2 new item: 

‘‘PART VII—FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS’’. 

3 (d) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to taxable years beginning after 

5 December 31, 2012. 

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

7 It is the sense of the Senate that— 

8 (1) Congress should enact tax reform that re9 peals unfair and unnecessary tax loopholes and ex10 penditures, simplifies the system for millions of tax11 payers and businesses (including by eliminating the 

12 alternative minimum tax for middle-class Ameri13 cans), and makes sure that the wealthiest taxpayers 

14 pay a fair share; and 

15 (2) this Act is an interim step that can be done 

16 quickly and serve as a floor on taxes for the highest17 income taxpayers, cut the deficit by billions of dol18 lars a year, and help encourage more fundamental 

19 reform of the tax system. 


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Calendar No. 339 

112TH CONGRESS 

2D SESSION S. 2230 

A BILL 

To reduce the deficit by imposing a minimum 

effective tax rate for high-income taxpayers. 

MARCH 26, 2012 

Read the second time and placed on the calendar 


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