I 

114TH CONGRESS 

1ST SESSION H. R. 362 

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

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 14, 2015 

Mr. CICILLINE (for himself, Mr. CARTWRIGHT, Mr. POCAN, Mr. ELLISON, Mr. 

LANGEVIN, Ms. SCHAKOWSKY, Ms. WILSON of Florida, Ms. LEE, Mr. 

DELANEY, Mr. HASTINGS, Ms. MCCOLLUM, Mr. LARSEN of Washington, 

Ms. CHU of California, Mr. CONYERS, Ms. CLARK of Massachusetts, Mr. 

TONKO, Mr. KENNEDY, and Ms. HAHN) introduced the following bill; 

which was referred to the Committee on Ways and Means 

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 2015’’. 


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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 VIII—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, determined without regard 

11 to any tax liability determined under 

12 this section, 

13 ‘‘(II) the tax imposed by section 

14 55 for the taxable year, plus 

15 ‘‘(III) the payroll tax for the tax16 able year, over 

17 ‘‘(ii) the credits allowable under part 

18 IV of subchapter A (other than sections 

19 27(a), 31, and 34). 

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

21 of this section— 

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

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

24 ‘‘(A) the adjusted gross income of the tax25 payer, over 


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1 ‘‘(B) the modified charitable contribution 

2 deduction for the taxable year. 

3 ‘‘(2) MODIFIED CHARITABLE CONTRIBUTION

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

5 ‘‘(A) IN GENERAL.—The modified chari6 table contribution deduction for any taxable 

7 year is an amount equal to the amount which 

8 bears the same ratio to the deduction allowable 

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

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

11 ‘‘(i) the amount of itemized deduc12 tions allowable under the regular tax (as 

13 defined in section 55) for such taxable 

14 year, determined after the application of 

15 section 68, bears to 

16 ‘‘(ii) such amount, determined before 

17 the application of section 68. 

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

19 case of any individual who does not elect to 

20 itemize deductions for the taxable year, the 

21 modified charitable contribution deduction shall 

22 be zero. 

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

24 section— 


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1 ‘‘(1) IN GENERAL.—The term ‘high-income tax2 payer’ means, with respect to any taxable year, any 

3 taxpayer (other than a corporation) with an adjusted 

4 gross income for such taxable year in excess of 

5 $1,000,000 (50 percent of such amount in the case 

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

7 ‘‘(2) INFLATION ADJUSTMENT.— 

8 ‘‘(A) IN GENERAL.—In the case of a tax9 able year beginning after 2016, the $1,000,000 

10 amount under paragraph (1) shall be increased 

11 by an amount equal to— 

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

13 ‘‘(ii) the cost-of-living adjustment de14 termined under section 1(f)(3) for the cal15 endar year in which the taxable year be16 gins, determined by substituting ‘calendar 

17 year 2015’ for ‘calendar year 1992’ in sub18 paragraph (B) thereof. 

19 ‘‘(B) ROUNDING.—If any amount as ad20 justed under subparagraph (A) is not a multiple 

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

22 the next lowest multiple of $10,000. 

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

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

25 to the excess of— 


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

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

3 the extent such tax is attributable to the rate of tax 

4 in effect under section 3101) with respect to such 

5 taxable year or wages or compensation received dur6 ing such taxable year, over 

7 ‘‘(2) the deduction allowable under section 

8 164(f) for such taxable year. 

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

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

11 trust, adjusted gross income shall be computed in the 

12 manner described in section 67(e). 

13 ‘‘(f) NOT TREATED AS TAX IMPOSED BY THIS CHAP14 TER FOR CERTAIN PURPOSES.—The tax imposed under 

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

16 chapter for purposes of determining the amount of any 

17 credit under this chapter (other than the credit allowed 

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

19 (b) CLERICAL AMENDMENT.—The table of parts for 

20 subchapter A of chapter 1 of the Internal Revenue Code 

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

22 new item: 

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

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

24 this section shall apply to taxable years beginning after 

25 December 31, 2015. 


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1 SEC. 3. SENSE OF THE HOUSE OF REPRESENTATIVES RE2 GARDING TAX REFORM. 

3 It is the sense of the House of Representatives that— 

4 (1) Congress should enact tax reform that re5 peals unfair and unnecessary tax loopholes and ex6 penditures, simplifies the system for millions of tax7 payers and businesses, and makes sure that the 

8 wealthiest taxpayers pay a fair share; and 

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

10 quickly and serve as a floor on taxes for the highest11 income taxpayers, cut the deficit by billions of dol12 lars a year, and help encourage more fundamental 

13 reform of the tax system. 

Æ 


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