The Paying a Fair Share Act of 2025 would impose a new minimum tax on high-income earners designed to ensure wealthy Americans pay at least 30 percent of their income in federal taxes. The tax applies to individuals earning over $1 million annually (adjusted for inflation each year after 2025) and married couples filing separately earning over $500,000, and it would be calculated by comparing what they owe under this new rule to their regular income taxes plus payroll taxes. The bill does not allocate specific new funding but is intended to raise revenue by closing what supporters view as unfair tax advantages for wealthy individuals; charitable donations would still be partially deductible under this new tax. The legislation takes effect for tax years beginning after December 31, 2024, and House sponsors characterize it as an interim step toward broader tax reform that could reduce the federal deficit while serving as a floor ensuring the wealthiest taxpayers contribute their fair share.
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