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119-hr-2534119th CongressWALLET

Paying a Fair Share Act of 2025

Sponsored By: Representative Boyle, Brendan F. [D-PA-2]

Introduced

Summary

Creates a new "Fair Share Tax" that would charge an extra tax on very high earners based on how far their adjusted gross income (AGI) exceeds $1 million. The tax sets a tentative base equal to 30% of income above a modified charitable deduction and then compares that to a taxpayer’s regular tax, payroll taxes, and other specified amounts to determine the additional tax.

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  • High-income taxpayers. Individuals (not corporations) with AGI over $1.0 million would face the new tax, with the threshold set at 50 percent of that amount for married people filing separately. The threshold is indexed for inflation after 2025 and rounded down to the nearest $10,000.
  • Charitable donors and non-itemizers. The law defines a "modified charitable contribution deduction" that is tied to itemized deductions. If a taxpayer does not itemize, the modified charitable deduction is zero which increases the income subject to the 30% tentative charge.
  • How the extra tax is computed and treated. The additional tax is the excess of the tentative 30% amount over the taxpayer’s regular tax, the section 55 tax, and payroll taxes, after allowed credits are applied. The Fair Share Tax itself is not treated as tax for calculating most other tax credits under the code.

*The bill’s text frames the change as reducing the deficit by billions annually.*

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 1 costs, 0 mixed.

Minimum tax for million-dollar incomes

This bill would add a new minimum tax on high-income filers (individuals, estates, and trusts). It would apply if your AGI is over $1,000,000 ($500,000 if married filing separately), with inflation indexing after 2025. The tentative tax would be 30% of your AGI after a modified charitable deduction (zero if you do not itemize). That amount would be reduced by your regular tax, the AMT, and a defined payroll tax, after subtracting most credits. The result would phase in as your income rises above the threshold, up to the full amount. This tax would not count when computing most other credits. It would start for tax years beginning after December 31, 2024.

Sponsors & CoSponsors

Sponsor

Boyle, Brendan F. [D-PA-2]

PA • D

Cosponsors

  • Rep. Khanna, Ro [D-CA-17]

    CA • D

    Sponsored 4/1/2025

  • Del. Norton, Eleanor Holmes [D-DC-At Large]

    DC • D

    Sponsored 4/1/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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