Paying a Fair Share Act of 2025

The Paying a Fair Share Act of 2025 imposes an additional tax on high-income taxpayers to ensure they pay a minimum tax rate. Sec. 2, Fair Share Tax on High-Income Taxpayers: This section adds a new tax for individuals (not corporations) with adjusted gross income over $1,000,000 (or $500,000 for married filing separately), adjusted for inflation after 2025. The tax is the excess of a 30% tentative fair share tax (on adjusted gross income minus a modified charitable deduction) over the sum of regular tax, alternative minimum tax, and payroll tax, minus certain credits. The tax phases in for income above the threshold. It applies to taxable years beginning after December 31, 2024. Sec. 3, Sense of the House Regarding Tax Reform: This non-binding section states the House's view that Congress should enact broader tax reform to close loopholes and simplify the system, and that this Act is an interim step to set a tax floor for the highest-income earners and reduce the deficit.