II 

114TH CONGRESS 

1ST SESSION S. 161 

To ensure high-income earners pay a fair share of Federal taxes. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 13, 2015 

Mr. WHITEHOUSE (for himself, Ms. BALDWIN, Mrs. SHAHEEN, Mr. DURBIN, 

Mr. REED, Mrs. MCCASKILL, Mr. FRANKEN, Ms. WARREN, Mr. 

MERKLEY, Mr. LEAHY, Mr. BLUMENTHAL, Mr. SANDERS, Mrs. BOXER, 

Mr. MARKEY, Mr. REID, Ms. KLOBUCHAR, and Mr. SCHATZ) introduced 

the following bill; which was read twice and referred to the Committee 

on Finance 

A BILL 

To ensure high-income earners pay a fair share of Federal 

taxes. 

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’’. 

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

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

8 Internal Revenue Code of 1986 is amended by adding at 

9 the end the following new part: 


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

2 TAXPAYERS 

‘‘Sec. 59A. Fair share tax. 

3 ‘‘SEC. 59A. FAIR SHARE TAX. 

4 ‘‘(a) GENERAL RULE.— 

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

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

7 taxable year (in addition to any other tax imposed 

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

9 ‘‘(A) the amount determined under para10 graph (2), and 

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

12 ‘‘(i) the numerator of which is the ex13 cess of— 

14 ‘‘(I) the taxpayer’s adjusted 

15 gross income, over 

16 ‘‘(II) the dollar amount in effect 

17 under subsection (c)(1), and 

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

19 dollar amount in effect under subsection 

20 (c)(1). 

21 ‘‘(2) AMOUNT OF TAX.—The amount of tax de22 termined under this paragraph is an amount equal 

23 to the excess (if any) of— 

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

25 taxable year, over 


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1 ‘‘(B) the excess of— 

2 ‘‘(i) the sum of— 

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

4 defined in section 26(b)) for the tax5 able year, determined without regard 

6 to any tax liability determined under 

7 this section, 

8 ‘‘(II) the tax imposed by section 

9 55 for the taxable year, plus 

10 ‘‘(III) the payroll tax for the tax11 able year, over 

12 ‘‘(ii) the credits allowable under part 

13 IV of subchapter A (other than sections 

14 27(a), 31, and 34). 

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

16 of this section— 

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

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

19 ‘‘(A) the adjusted gross income of the tax20 payer, over 

21 ‘‘(B) the modified charitable contribution 

22 deduction for the taxable year. 

23 ‘‘(2) MODIFIED CHARITABLE CONTRIBUTION

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


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1 ‘‘(A) IN GENERAL.—The modified chari2 table contribution deduction for any taxable 

3 year is an amount equal to the amount which 

4 bears the same ratio to the deduction allowable 

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

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

7 ‘‘(i) the amount of itemized deduc8 tions allowable under the regular tax (as 

9 defined in section 55) for such taxable 

10 year, determined after the application of 

11 section 68, bears to 

12 ‘‘(ii) such amount, determined before 

13 the application of section 68. 

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

15 case of any individual who does not elect to 

16 itemize deductions for the taxable year, the 

17 modified charitable contribution deduction shall 

18 be zero. 

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

20 section— 

21 ‘‘(1) IN GENERAL.—The term ‘high-income tax22 payer’ means, with respect to any taxable year, any 

23 taxpayer (other than a corporation) with an adjusted 

24 gross income for such taxable year in excess of 


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

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

3 ‘‘(2) INFLATION ADJUSTMENT.— 

4 ‘‘(A) IN GENERAL.—In the case of a tax5 able year beginning after 2016, the $1,000,000 

6 amount under paragraph (1) shall be increased 

7 by an amount equal to— 

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

9 ‘‘(ii) the cost-of-living adjustment de10 termined under section 1(f)(3) for the cal11 endar year in which the taxable year be12 gins, determined by substituting ‘calendar 

13 year 2015’ for ‘calendar year 1992’ in sub14 paragraph (B) thereof. 

15 ‘‘(B) ROUNDING.—If any amount as ad16 justed under subparagraph (A) is not a multiple 

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

18 the next lowest multiple of $10,000. 

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

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

21 to the excess of— 

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

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

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

25 in effect under section 3101) with respect to such 


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1 taxable year or wages or compensation received dur2 ing such taxable year, over 

3 ‘‘(2) the deduction allowable under section 

4 164(f) for such taxable year. 

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

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

7 trust, adjusted gross income shall be computed in the 

8 manner described in section 67(e). 

9 ‘‘(f) NOT TREATED AS TAX IMPOSED BY THIS CHAP10 TER FOR CERTAIN PURPOSES.—The tax imposed under 

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

12 chapter for purposes of determining the amount of any 

13 credit under this chapter (other than the credit allowed 

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

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

16 subchapter A of chapter 1 of the Internal Revenue Code 

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

18 new item: 

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

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

20 this section shall apply to taxable years beginning after 

21 December 31, 2015. 

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

23 It is the sense of the Senate that— 

24 (1) Congress should enact tax reform that re25 peals unfair and unnecessary tax loopholes and exVerDate Sep 11 2014 03:27 Jan 23, 2015 Jkt 049200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S161.IS S161

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1 penditures, simplifies the system for millions of tax2 payers and businesses, and makes sure that the 

3 wealthiest taxpayers pay a fair share; and 

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

5 quickly and serve as a floor on taxes for the highest6 income taxpayers, cut the deficit by billions of dol7 lars a year, and help encourage more fundamental 

8 reform of the tax system. 

Æ 


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