Bill · S. 1243· Senate(119-S-1243)
Paying a Fair Share Act of 2025
- Introduced
- 4/1/2025
- Last activity
- 4/1/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Sheldon Whitehouse
- Cosponsors
- - 14 - 0
- Introduced
- In Committee
What this bill would do
The Paying a Fair Share Act of 2025 aims to ensure high-income earners pay a fair share of Federal taxes. It introduces a new "Fair Share Tax" on high-income taxpayers, defined as those with an adjusted gross income exceeding $1,000,000. This new tax is calculated based on a taxpayer's income relative to a specific dollar amount and a tentative fair share tax. The bill includes provisions for inflation adjustments to the income threshold for years after 2025. Additionally, the Senate views this as an interim step to serve as a floor on taxes for highest-income earners and to cut the deficit.
Yes· 3 of 4
Does this raise taxes on the highest earners?+8
The bill imposes a new 'Fair Share Tax' on individuals with adjusted gross income exceeding $1,000,000.
Would high-income households be better off under this?+5
The tax burden is concentrated on the highest income earners, potentially increasing public revenue for social services.
Does this reduce what the federal government owes?+5
The bill is intended to cut the federal deficit by billions of dollars a year through new tax revenue.
The opposite
Would people with substantial wealth be better off under this?-8
The bill imposes a significant new tax on those with high adjusted gross incomes.
Would the very wealthiest people be better off under this?-8
The bill targets the highest income earners with a new tax structure.
Would billionaires be better off under this?-8
The bill increases the tax floor for the highest earners.
Who it would affect, and how
Potential Positive Impacts for People
-
Deficit Reduction: The bill is intended to cut the deficit by billions of dollars a year (Section 3).
-
Tax Floor for Wealthy Taxpayers: The Act serves as a floor on taxes for the highest-sincome taxpayers (Section 3).
Potential Negative Impacts for People
-
Additional Tax Burden on High-Income Earners: A new tax is imposed on high-income taxpayers, which applies to any taxpayer (other than a corporation) with an adjusted gross income in excess of $1,000,000, or 50 percent of that amount for a married individual filing a separate return (Section 2(a), Section 2(c)(1)).
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Tax on Income Above a Specific Threshold: The tax is calculated as a product of a fraction determined by the taxpayer's adjusted gross income over a specific dollar amount (Section 2(a)(1)).
-
Impact on Charitable Deductions: The "tentative fair share tax" is based on adjusted gross income minus a modified charitable contribution deduction, and for individuals who do not elect to itemize deductions, this modified deduction is zero (Section 2(b)(1), Section 2(b)(2)(B)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For High Income Households+5Good For Billionaires-8Good For High Net Worth Individuals-8Good For Ultra High Net Worth Individuals-8
- Economy And Finance
- Increases Wealthy Taxes+8Improves Fiscal Responsibility+5Reduces National Debt+5
- 4/4/2025
- 1 Cosponsor added.
- 4/1/2025
- Read twice and referred to the Committee on Finance.
- 14 Cosponsors added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Tammy BaldwinDemocrat · Wisconsin
Richard BlumenthalDemocrat · Connecticut
Cory BookerDemocrat · New Jersey
Richard DurbinDemocrat · Illinois
Mazie HironoDemocrat · Hawaii
Amy KlobucharDemocrat · Minnesota
Edward MarkeyDemocrat · Massachusetts
Jeff MerkleyDemocrat · Oregon
Alex PadillaDemocrat · California
John ReedDemocrat · Rhode Island
Bernie SandersIndependent · Vermont
Tina SmithDemocrat · Minnesota
Chris Van HollenDemocrat · Maryland
Peter WelchDemocrat · Vermont
Elizabeth WarrenDemocrat · Massachusetts