I 

112TH CONGRESS 

1ST SESSION H. R. 1124 

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 

MARCH 16, 2011 

Ms. SCHAKOWSKY (for herself, Mr. GRIJALVA, Mr. ELLISON, Mr. JACKSON of 

Illinois, Ms. EDWARDS, Mr. FILNER, Mr. NADLER, Mr. COHEN, Mr. 

YARMUTH, and Mr. DEFAZIO) 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 2011’’. 

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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 is amended to 

7 read as follows: 

If taxable income is: The tax is: 

Not over $69,000 .......................... 15% of taxable income. 

Over $69,000 but not over 

$139,350.

$10,350, plus 28% of the excess over 

$69,000. 

Over $139,350 but not over 

$212,300.

$30,048, plus 31% of the excess over 

$139,350. 

Over $212,300 but not over 

$379,150.

$52,662.50, plus 36% of the excess 

over $212,300. 

Over $379,150 but not over 

$1,000,000.

$112,728.50, plus 39.6% of the excess over $379,150. 

Over $1,000,000 but not over 

$10,000,000.

$358,585.10, plus 45% of the excess 

over $1,000,000. 

Over $10,000,000 but not over 

$20,000,000.

$4,408,585.10, plus 46% of the excess over $10,000,000. 

Over $20,000,000 but not over 

$100,000,000.

$9,008,585.10, plus 47% of the excess over $20,000,000. 

Over $100,000,000 but not over 

$1,000,000,000.

$46,608,585.10, plus 48% of the excess over $100,000,000. 

Over $1,000,000,000 ..................... $478,608,585.10, plus 49% over the 

excess over $1,000,000,000. 

8 (2) HEADS OF HOUSEHOLD.—The table con9 tained in subsection (b) of section 1 of such Code is 

10 amended to read as follows: 

If taxable income is: The tax is: 

Not over $46,250 .......................... 15% of taxable income. 

Over $46,250 but not over 

$119,400.

$6,937.50, plus 28% of the excess 

over $46,250. 

Over $119,400 but not over 

$193,350.

$27,419.50, plus 31% of the excess 

over $119,400. 

Over $193,350 but not over 

$379,150.

$50,344, plus 36% of the excess over 

$193,350. 

Over $379,150 but not over 

$1,000,000.

$117,232, plus 39.6% of the excess 

over $379,150. 

Over $1,000,000 but not over 

$10,000,000.

$363,088.60, plus 45% of the excess 

over $1,000,000. 

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If taxable income is: The tax is: 

Over $10,000,000 but not over 

$20,000,000.

$4,413,088.60, plus 46% of the excess over $10,000,000. 

Over $20,000,000 but not over 

$100,000,000.

$9,013,088.60, plus 47% of the excess over $20,000,000. 

Over $100,000,000 but not over 

$1,000,000,000.

$46,613,088.60, plus 48% of the excess over $100,000,000. 

Over $1,000,000,000 ..................... $478,613,088.60, 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 $34,500 .......................... 15% of taxable income. 

Over $34,500 but not over 

$83,600.

$5,175, plus 28% of the excess over 

$34,500. 

Over $83,600 but not over 

$174,400.

$18,923, plus 31% of the excess over 

$83,600. 

Over $174,400 but not over 

$379,150.

$47,071, plus 36% of the excess over 

$174,400. 

Over $379,150 but not over 

$1,000,000.

$120,781, plus 39.6% of the excess 

over $379,150. 

Over $1,000,000 but not over 

$10,000,000.

$366,637.60, plus 45% of the excess 

over $1,000,000. 

Over $10,000,000 but not over 

$20,000,000.

$4,416,637.60, plus 46% of the excess over $10,000,000. 

Over $20,000,000 but not over 

$100,000,000.

$9,016,637.60, plus 47% of the excess over $20,000,000. 

Over $100,000,000 but not over 

$1,000,000,000.

$46,616,637.60, plus 48% of the excess over $100,000,000. 

Over $1,000,000,000 ..................... $478,616,637.60, plus 49% of the excess over $1,000,000,000. 

6 (4) MARRIED INDIVIDUALS FILING SEPARATE

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

8 section 1 of such Code is amended to read as fol9 lows: 

If taxable income is: The tax is: 

Not over $34,500 .......................... plus 15% of taxable income. 

Over $34,500 but not over 

$69,675.

$5,175, plus 28% of the excess over 

$34,500. 

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If taxable income is: The tax is: 

Over $69,675 but not over 

$106,150.

$15,024, plus 31% of the excess over 

$69,675. 

Over $106,150 but not over 

$189,575.

$26,331.25, plus 35% of the excess 

over $106,150. 

Over $189,575 but not over 

$500,000.

$55,530, plus 39.6% of the excess 

over $189,575. 

Over $500,000 but not over 

$5,000,000.

$178,458.30, plus 45% of the excess 

over $500,000. 

Over $5,000,000 but not over 

$10,000,000.

$2,203,458.30, plus 46% of the excess over $5,000,000. 

Over $10,000,000 but not over 

$50,000,000.

$4,503,458.30, plus 47% of the excess over $10,000,000. 

Over $50,000,000 but not over 

$500,000,000.

$23,303,458.30, plus 48% of the excess over $50,000,000. 

Over $500,000,000 ........................ $239,303,458.30, plus 49% of the excess over $500,000,000. 

1 (b) RECAPTURE OF LOWER CAPITAL GAINS RATES

2 FOR INDIVIDUALS SUBJECT TO ADDED RATE BRACK3 ETS.— 

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

5 amended by adding at the end the following new 

6 subsection: 

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

8 TAXABLE INCOME SUBJECT TO AT LEAST 45-PERCENT

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

10 taxable income in excess of the minimum dollar amount 

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

12 then— 

13 ‘‘(1) the tax imposed by this section for the tax14 able year with respect to such excess shall be deter15 mined without regard to subsection (h), and 

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1 ‘‘(2) the amount of net capital gain of the tax2 payer taken into account for the taxable year under 

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

4 ‘‘(A) such excess, or 

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

6 year. 

7 Any reduction in net capital gain under the pre8 ceding sentence shall be allocated between adjusted 

9 net capital gain, unrecaptured 1250 gain, and sec10 tion 1202 gain in amounts proportionate to the 

11 amounts of each such gain.’’. 

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

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

14 ‘‘If a taxpayer has’’ and inserting ‘‘Except to the ex15 tent provided in subsection (j), if a taxpayer has’’. 

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

17 this section shall apply to taxable years beginning after 

18 December 31, 2010. 

Æ 

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