I 
112TH CONGRESS 
2D SESSION 
H. R. 3903 
To reduce the deficit by imposing a minimum effective tax rate for high- 
income taxpayers. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 6, 2012 
Ms. BALDWIN 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Paying a Fair Share 
Act of 2012’’. 
SEC. 2. FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS. 
(a) IN GENERAL.—Subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new part: 
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‘‘PART VII—FAIR SHARE TAX ON HIGH-INCOME 
TAXPAYERS 
‘‘Sec. 59B. Fair share tax. 
‘‘SEC. 59B. FAIR SHARE TAX. 
‘‘(a) GENERAL RULE.— 
‘‘(1) PHASE-IN OF TAX.—In the case of any 
high-income taxpayer, there is hereby imposed for a 
taxable year (in addition to any other tax imposed 
by this subtitle) a tax equal to the product of— 
‘‘(A) the amount determined under para-
graph (2), and 
‘‘(B) a fraction (not to exceed 1)— 
‘‘(i) the numerator of which is the ex-
cess of— 
‘‘(I) 
the 
taxpayer’s 
adjusted 
gross income, over 
‘‘(II) the dollar amount in effect 
under subsection (c)(1), and 
‘‘(ii) the denominator of which is the 
dollar amount in effect under subsection 
(c)(1). 
‘‘(2) AMOUNT OF TAX.—The amount of tax de-
termined under this paragraph is an amount equal 
to the excess (if any) of— 
‘‘(A) the tentative fair share tax for the 
taxable year, over 
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‘‘(B) the excess of— 
‘‘(i) the sum of— 
‘‘(I) the regular tax liability (as 
defined in section 26(b)) for the tax-
able year, 
‘‘(II) the tax imposed by section 
55 for the taxable year, plus 
‘‘(III) the payroll tax for the tax-
able year, over 
‘‘(ii) the credits allowable under part 
IV of subchapter A (other than sections 
27(a), 31, and 34). 
‘‘(b) TENTATIVE FAIR SHARE TAX.—For purposes 
of this section— 
‘‘(1) IN GENERAL.—The tentative fair share tax 
for the taxable year is 30 percent of the excess of— 
‘‘(A) the adjusted gross income of the tax-
payer, over 
‘‘(B) the modified charitable contribution 
deduction for the taxable year. 
‘‘(2) MODIFIED
CHARITABLE
CONTRIBUTION 
DEDUCTION.—For purposes of paragraph (1)— 
‘‘(A) IN
GENERAL.—The modified chari-
table contribution deduction for any taxable 
year is an amount equal to the amount which 
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bears the same ratio to the deduction allowable 
under section 170 (section 642(c) in the case of 
a trust or estate) for such taxable year as— 
‘‘(i) the amount of itemized deduc-
tions allowable under the regular tax (as 
defined in section 55) for such taxable 
year, determined after the application of 
section 68, bears to 
‘‘(ii) such amount, determined before 
the application of section 68. 
‘‘(B) TAXPAYER
MUST
ITEMIZE.—In the 
case of any individual who does not elect to 
itemize deductions for the taxable year, the 
modified charitable contribution deduction shall 
be zero. 
‘‘(c) HIGH-INCOME TAXPAYER.—For purposes of this 
section— 
‘‘(1) IN GENERAL.—The term ‘high-income tax-
payer’ means, with respect to any taxable year, any 
taxpayer (other than a corporation) with an adjusted 
gross income for such taxable year in excess of 
$1,000,000 (50 percent of such amount in the case 
of a married individual who files a separate return). 
‘‘(2) INFLATION ADJUSTMENT.— 
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‘‘(A) IN GENERAL.—In the case of a tax-
able year beginning after 2013, the $1,000,000 
amount under paragraph (1) shall be increased 
by an amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins, determined by substituting ‘calendar 
year 2012’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof. 
‘‘(B) ROUNDING.—If any amount as ad-
justed under subparagraph (A) is not a multiple 
of $10,000, such amount shall be rounded to 
the next lowest multiple of $10,000. 
‘‘(d) PAYROLL TAX.—For purposes of this section, 
the payroll tax for any taxable year is an amount equal 
to the excess of— 
‘‘(1) the taxes imposed on the taxpayer under 
sections 1401, 1411, 3101, 3201, and 3211(a) (to 
the extent such taxes are attributable to the rate of 
tax in effect under section 3101) with respect to 
such taxable year or wages or compensation received 
during the taxable year, over 
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‘‘(2) the deduction allowable under section 
164(f) for such taxable year. 
‘‘(e) SPECIAL RULE FOR ESTATES AND TRUSTS.— 
For purposes of this section, in the case of an estate or 
trust, adjusted gross income shall be computed in the 
manner described in section 67(e). 
‘‘(f) NOT TREATED AS TAX IMPOSED BY THIS CHAP-
TER FOR CERTAIN PURPOSES.—The tax imposed under 
this section shall not be treated as tax imposed by this 
chapter for purposes of determining the amount of any 
credit under this chapter (other than the credit allowed 
under section 27(a)) or for purposes of section 55.’’. 
(b) CONFORMING AMENDMENT.—Section 26(b)(2) of 
the Internal Revenue Code of 1986 is amended by redesig-
nating subparagraphs (C) through (X) as subparagraphs 
(D) through (Y), respectively, and by inserting after sub-
paragraph (B) the following new subparagraph: 
‘‘(C) section 59B (relating to fair share 
tax),’’. 
(c) CLERICAL AMENDMENT.—The table of parts for 
subchapter A of chapter 1 of the Internal Revenue Code 
of 1986 is amended by adding at the end the following 
new item: 
‘‘PART VII—FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS’’. 
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(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2012. 
SEC. 3. SENSE OF THE HOUSE OF REPRESENTATIVES RE-
GARDING TAX REFORM. 
It is the sense of the House of Representatives that— 
(1) Congress should enact tax reform that re-
peals unfair and unnecessary tax loopholes and ex-
penditures, simplifies the system for millions of tax-
payers and businesses (including by eliminating the 
alternative minimum tax for middle-class Ameri-
cans), and makes sure that the wealthiest taxpayers 
pay a fair share; and 
(2) this Act is an interim step that can be done 
quickly and serve as a floor on taxes for the highest- 
income taxpayers, cut the deficit by billions of dol-
lars a year, and help encourage more fundamental 
reform of the tax system. 
Æ 
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