,,ii #aacth ,,congress #ast ,session ,s4 #cba ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,february #ac1 #bjac ,mr4 ,whitehouse 7for himself1 ,ms4 ,baldwin1 ,mr4 ,blumenthal1 ,mr4 ,leahy1 ,mr4 ,reed1 ,mr4 ,lautenberg1 ,mr4 ,levin1 ,mr4 ,sanders1 ,mr4 ,rockefeller1 ,mr4 ,harkin1 and ,mr4 ,franken7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to reduce the deficit by imposing a minimum effective tax rate for high-income taxpayers4 #a4 ,short title ,this ,act may be cited as the ,paying a ,fair ,share ,act of #bjac 4 #b4 ,fair share tax on high-income taxpayers 7a7 ,in general ,subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new part3 ,,viii ,fair share tax on high-income taxpayers ,sec4 #ei;,b4 ,fair share tax4 #ei;,b4 ,fair share tax 7a7 ,general rule 7#a7 ,phase-in of tax ,in the case of any high-income taxpayer1 there is hereby imposed for a taxable year 7in addition to any other tax imposed by this subtitle7 a tax equal to the product of-- 7,a7 the amount determined under paragraph 7#b71 and 7,b7 a fraction 7not to exceed #a7-- 7i7 the numerator of which is the excess of-- 7,i7 the taxpayer's adjusted gross income1 over 7,,ii7 the dollar amount in effect under subsection 7c77#a71 and 7ii7 the denominator of which is the dollar amount in effect under subsection 7c77#a74 7#b7 ,amount of tax ,the amount of tax determined under this paragraph is an amount equal to the excess 7if any7 of-- 7,a7 the tentative fair share tax for the taxable year1 over 7,b7 the excess of-- 7i7 the sum of-- 7,i7 the regular tax liability 7as defined in section #bf7;b77 for the taxable year1 determined without regard to any tax liability determined under this section1 7,,ii7 the tax imposed by section #ee for the taxable year1 plus 7,,iii7 the payroll tax for the taxable year1 over 7ii7 the credits allowable under part ,,iv of subchapter ,a 7other than sections #bg7;a71 #ca1 and #cd74 7b7 ,tentative fair share tax ,for purposes of this section-- 7#a7 ,in general ,the tentative fair share tax for the taxable year is #cj percent of the excess of-- 7,a7 the adjusted gross income of the taxpayer1 over 7,b7 the modified charitable contribution deduction for the taxable year4 7#b7 ,modified charitable contribution deduction ,for purposes of paragraph 7#a7-- 7,a7 ,in general ,the modified charitable contribution deduction for any taxable year is an amount equal to the amount which bears the same ratio to the deduction allowable under section #agj 7section #fdb7;c7 in the case of a trust or estate7 for such taxable year as-- 7i7 the amount of itemized deductions allowable under the regular tax 7as defined in section #ee7 for such taxable year1 determined after the application of section #fh1 bears to 7ii7 such amount1 determined before the application of section #fh4 7,b7 ,taxpayer must itemize ,in the case of any individual who does not elect to itemize deductions for the taxable year1 the modified charitable contribution deduction shall be zero4 7c7 ,high-,income taxpayer ,for purposes of this section-- 7#a7 ,in general ,the term high-income taxpayer means1 with respect to any taxable year1 any taxpayer 7other than a corporation7 with an adjusted gross income for such taxable year in excess of #a1jjj1jjj 7#ej percent of such amount in the case of a married individual who files a separate return74 7#b7 ,inflation adjustment 7,a7 ,in general ,in the case of a taxable year beginning after #bjad1 the #a1jjj1jjj amount under paragraph 7#a7 shall be increased by an amount equal to-- 7i7 such dollar amount1 multiplied by 7ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting calendar year #bjac for calendar year #aiib in subparagraph 7,b7 thereof4 7,b7 ,rounding ,if any amount as adjusted under subparagraph 7,a7 is not a multiple of #aj1jjj1 such amount shall be rounded to the next lowest multiple of #aj1jjj4 7d7 ,payroll tax ,for purposes of this section1 the payroll tax for any taxable year is an amount equal to the excess of-- 7#a7 the taxes imposed on the taxpayer under sections #adja1 #adaa1 #caja1 #cbja1 and #cbaa7;a7 7to the extent such tax is attributable to the rate of tax in effect under section #caja7 with respect to such taxable year or wages or compensation received during such taxable year1 over 7#b7 the deduction allowable under section #afd7;f7 for such taxable year4 7e7 ,special rule for estates and trusts ,for purposes of this section1 in the case of an estate or trust1 adjusted gross income shall be computed in the manner described in section #fg7;e74 7f7 ,not treated as tax imposed by this chapter 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 7other than the credit allowed under section #bg7;a77 or for purposes of section #ee4 4 7b7 ,clerical amendment ,the table of parts for subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,part ,,viii--,fair share tax on high-,income taxpayers 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjac4 #c4 ,sense of the ,senate regarding tax reform ,it is the sense of the ,senate that-- 7#a7 ,congress should enact tax reform that repeals unfair and unnecessary tax loopholes and expenditures1 simplifies the system for millions of taxpayers and businesses1 and makes sure that the wealthiest taxpayers pay a fair share2 and 7#b7 this ,act is an interim step that can be done quickly and serve as a floor on taxes for the highest-income taxpayers1 cut the deficit by billions of dollars a year1 and help encourage more fundamental reform of the tax system4