Title: Fairness in Taxation Act of 2017
Policy area: Taxation

Summary:
Fairness in Taxation Act of 2017
This bill amends the Internal Revenue Code to: (1) increase individual income tax rates for taxpayers whose taxable income exceeds $1 million, and (2) provide for an adjustment in the capital gains tax of taxpayers whose taxable income is subject to the 45% tax bracket.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 636 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 636

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

                            January 24, 2017

Ms. Schakowsky (for herself, Mr. Nadler, Mr. Grijalva, Ms. Norton, Ms. 
 DeLauro, Ms. Lee, Mr. Cummings, Mr. Ellison, Mr. Serrano, Mr. Pocan, 
 Mr. Cohen, and Mr. Conyers) 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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fairness in Taxation Act of 2017''.

SEC. 2. INCREASED TAX RATES FOR TAXPAYERS WITH MORE THAN $1,000,000 
              TAXABLE INCOME.

    (a) In General.--
            (1) Married individuals filing joint returns and surviving 
        spouses.--The table contained in subsection (a) of section 1 of 
        the Internal Revenue Code of 1986 is amended to read as 
        follows:

If taxable income is:               The tax is:
    Not over $18,650...............
                                        10% of taxable income.
    Over $18,650 but not over 
        $75,900.
                                        $1,865, plus 15% of the excess 
                                                over $18,650.
    Over $75,900 but not over 
        $153,100.
                                        $10,452.50, plus 25% of the 
                                                excess over $75,900.
    Over $153,100 but not over 
        $233,350.
                                        $29,752.50, plus 28% of the 
                                                excess over $153,100.
    Over $233,350 but not over 
        $416,700.
                                        $52,222.50, plus 33% of the 
                                                excess over $233,350.
    Over $416,700 but not over 
        $470,700.
                                        $112,728, plus 35% of the 
                                                excess over $416,700.
    Over $470,700 but not over 
        $1,000,000.
                                        $131,628, plus 39.6% of the 
                                                excess over $470,700.
    Over $1,000,000 but not over 
        $10,000,000.
                                        $341,231, plus 45% of the 
                                                excess over $1,000,000.
    Over $10,000,000 but not over 
        $20,000,000.
                                        $4,391,231, plus 46% of the 
                                                excess over 
                                                $10,000,000.
    Over $20,000,000 but not over 
        $100,000,000.
                                        $8,991,231, plus 47% of the 
                                                excess over 
                                                $20,000,000.
    Over $100,000,000 but not over 
        $1,000,000,000.
                                        $46,591,231, plus 48% of the 
                                                excess over 
                                                $100,000,000.
    Over $1,000,000,000............
                                        $478,391,231, plus 49% over the 
                                                excess over 
                                                $1,000,000,000.
            (2) Heads of household.--The table contained in subsection 
        (b) of section 1 of such Code is amended to read as follows:

If taxable income is:               The tax is:
    Not over $13,350...............
                                        10% of taxable income.
    Over $13,350 but not over 
        $50,800.
                                         $1,335, plus 15% of the excess 
                                                over $13,350.
    Over $50,800 but not over 
        $131,200.
                                        $6,952.50, plus 25% of the 
                                                excess over $50,800.
    Over $131,200 but not over 
        $212,500.
                                        $27,052.50, plus 28% of the 
                                                excess over $131,200.
    Over $212,500 but not over 
        $416,700.
                                        $49,816.50, plus 33% of the 
                                                excess over $212,500.
    Over $416,700 but not over 
        $444,550.
                                        $117,202.50, plus 35% of the 
                                                excess over $416,700.
    Over $444,550 but not over 
        $1,000,000.
                                        $126,950, plus 39.6% of the 
                                                excess over $444,550.
    Over $1,000,000 but not over 
        $10,000,000.
                                        $346,908, plus 45% of the 
                                                excess over $1,000,000.
    Over $10,000,000 but not over 
        $20,000,000.
                                        $4,396,908, plus 46% of the 
                                                excess over 
                                                $10,000,000.
    Over $20,000,000 but not over 
        $100,000,000.
                                        $8,996,908, plus 47% of the 
                                                excess over 
                                                $20,000,000.
    Over $100,000,000 but not over 
        $1,000,000,000.
                                        $46,596,908, plus 48% of the 
                                                excess over 
                                                $100,000,000.
    Over $1,000,000,000............
                                        $478,596,908, plus 49% of the 
                                                excess over 
                                                $1,000,000,000.
            (3) Unmarried individuals (other than surviving spouses and 
        heads of households).--The table contained in subsection (c) of 
        section 1 of such Code is amended to read as follows:

If taxable income is:               The tax is:
    Not over $9,325................
                                        10% of taxable income.
    Over $9,325 but not over 
        $37,950.
                                        $932.50, plus 15% of the excess 
                                                over $9,325.
    Over $37,950 but not over 
        $91,900.
                                        $5,226.25, plus 25% of the 
                                                excess over $37,950.
    Over $91,900 but not over 
        $191,650.
                                        $18,713.75, plus 28% of the 
                                                excess over $91,900.
    Over $191,650 but not over 
        $416,700.
                                        $46,643.75, plus 33% of the 
                                                excess over $191,650.
    Over $416,700 but not over 
        $418,400.
                                        $120,910.25, plus 35% of the 
                                                excess over $416,700.
    Over $418,400 but not over 
        $1,000,000.
                                        $121,505.25, plus 39.6% of the 
                                                excess over $418,400.
    Over $1,000,000 but not over 
        $10,000,000.
                                        $351,819, plus 45% of the 
                                                excess over $1,000,000.
    Over $10,000,000 but not over 
        $20,000,000.
                                        $4,401,819, plus 46% of the 
                                                excess over 
                                                $10,000,000.
    Over $20,000,000 but not over 
        $100,000,000.
                                        $9,001,819, plus 47% of the 
                                                excess over 
                                                $20,000,000.
    Over $100,000,000 but not over 
        $1,000,000,000.
                                        $46,601,819, plus 48% of the 
                                                excess over 
                                                $100,000,000.
    Over $1,000,000,000............
                                        $478,601,819, plus 49% of the 
                                                excess over 
                                                $1,000,000,000.
            (4) Married individuals filing separate returns.--The table 
        contained in subsection (d) of section 1 of such Code is 
        amended to read as follows:

If taxable income is:               The tax is:
    Not over $9,325................
                                        10% of taxable income.
    Over $9,325 but not over 
        $37,950.
                                        $932.50, plus 15% of the excess 
                                                over $9,325.
    Over $37,950 but not over 
        $76,550.
                                        $5,226.25, plus 25% of the 
                                                excess over $37,950.
    Over $76,550 but not over 
        $116,675.
                                        $14,876.75, plus 28% of the 
                                                excess over $76,550.
    Over $116,675 but not over 
        $208,350.
                                        $26,111.25, plus 33% of the 
                                                excess over $116,675.
    Over $208,350 but not over 
        $235,350.
                                        $56,364, plus 35% of the excess 
                                                over $208,350
    Over $235,350 but not over 
        $500,000.
                                         $65,814, plus 39.6% of the 
                                                excess over $235,350.
    Over $500,000 but not over 
        $5,000,000.
                                        $170,615, plus 45% of the 
                                                excess over $500,000.
    Over $5,000,000 but not over 
        $10,000,000.
                                        $2,195,615, plus 46% of the 
                                                excess over $5,000,000.
    Over $10,000,000 but not over 
        $50,000,000.
                                        $4,495,615, plus 47% of the 
                                                excess over 
                                                $10,000,000.
    Over $50,000,000 but not over 
        $500,000,000.
                                        $23,295,615, plus 48% of the 
                                                excess over 
                                                $50,000,000.
    Over $500,000,000..............
                                        $239,295,615, plus 49% of the 
                                                excess over 
                                                $500,000,000.
            (5) Inflation adjustment.--Subsection (f) of section 1 of 
        such Code is amended by adding at the end the following new 
        paragraph:
            ``(9) Special rule for taxable years beginning after 
        2017.--In prescribing the tables under paragraph (1) which 
        apply with respect to taxable years beginning in a calendar 
        year after 2017, the cost-of-living adjustment under paragraph 
        (3) shall be determined by substituting `2016' for `1992' in 
        subparagraph (B) thereof.''.
            (6) Conforming amendment.--Section 1 of such Code is 
        amended by striking subsection (i).
    (b) Recapture of Lower Capital Gains Rates for Individuals Subject 
to Added Rate Brackets.--
            (1) In general.--Section 1 of such Code is amended by 
        adding at the end the following new subsection:
    ``(j) Special Rule for Capital Gains in Case of Taxable Income 
Subject to at Least 45-Percent Rate Bracket.--If for the taxable year a 
taxpayer has taxable income in excess of the minimum dollar amount for 
the 45-percent rate bracket and has a net capital gain, then--
            ``(1) the tax imposed by this section for the taxable year 
        with respect to such excess shall be determined without regard 
        to subsection (h), and
            ``(2) the amount of net capital gain of the taxpayer taken 
        into account for the taxable year under subsection (h) shall be 
        reduced by the lesser of--
                    ``(A) such excess, or
                    ``(B) the net capital gain for the taxable year.
        Any reduction in net capital gain under the preceding sentence 
        shall be allocated between adjusted net capital gain, 
        unrecaptured 1250 gain, and section 1202 gain in amounts 
        proportionate to the amounts of each such gain. Any term used 
        in this subsection which is also used in subsection (h) shall 
        have the meaning given such term in subsection (h).''.
            (2) Conforming amendment.--Paragraph (1) of section 1(h) of 
        such Code is amended by striking ``If a taxpayer has'' and 
        inserting ``Except to the extent provided in subsection (j), if 
        a taxpayer has''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2016.
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