0
Paying a Fair Share Act of 2023
12/15/2023, 4:07 PM
Summary of Bill S 1173
One of the key provisions of the bill is the implementation of a minimum tax rate for individuals earning over a certain income threshold. This would prevent high-income earners from using loopholes and deductions to significantly reduce their tax liability. Additionally, the bill aims to close tax loopholes that allow corporations to avoid paying taxes on their profits.
The Paying a Fair Share Act of 2023 also includes measures to increase transparency and accountability in the tax system. It requires the IRS to publish an annual report detailing the amount of taxes paid by individuals and corporations at different income levels. This information would help to shed light on any disparities in tax payments and ensure that everyone is paying their fair share. Overall, the Paying a Fair Share Act of 2023 is aimed at creating a more equitable tax system that ensures that all individuals and corporations contribute their fair share to support government programs and services. It remains to be seen whether this bill will be passed by Congress and signed into law.
Congressional Summary of S 1173
Paying a Fair Share Act of 2023
This bill requires an individual taxpayer whose adjusted gross income exceeds $1 million (high-income taxpayer) to pay a minimum tax rate of 30% of the excess of the taxpayer's adjusted gross income over the taxpayer's modified charitable contribution deduction for the taxable year (tentative fair share tax). The amount of the tax is the excess (if any) of the tentative fair share tax over the excess of (1) the sum of the taxpayer's regular tax liability, the alternative minimum tax (AMT) amount, and the payroll tax for the taxable year; over (2) certain tax credits.
The bill provides for a phase-in of such tax and requires an inflation adjustment to the $1 million income threshold for taxable years beginning after 2023.
The bill also expresses the sense of the Senate that Congress should enact tax reform that repeals unfair and unnecessary tax loopholes and expenditures, simplifies the tax system, and makes sure that the wealthiest taxpayers pay a fair share of taxes.
