~The Paying a Fair Share Act would set a simple 30 percent minimum effective tax rate for the wealthiest Americans ~
WASHINGTON, DC – Today, U.S. Senator Mazie K. Hirono (D-HI) joined Senator Sheldon Whitehouse (D-RI) and 14 Democratic colleagues in reintroducing the Paying a Fair Share Act to ensure that millionaires pay higher tax rates than middle-class Americans by enacting a 30-percent minimum tax on those with incomes over $1 million. Billionaire investor Warren Buffett famously highlighted the brokenness of our tax system when he lamented that he paid a lower tax rate than his secretary.
“Working families shouldn’t be paying more in taxes than billionaires—period,” said Senator Hirono. “This legislation will help ensure that the wealthiest Americans are paying their fair share in taxes and limit their ability to weasel out of paying taxes in the future. I’m proud to join my colleagues in introducing this bill to promote fairness in our tax code and hold the wealthiest in our country accountable.”
In 2022, the top .001% (or 1,538 households) earned at least $85.5 million, and paid an average federal tax rate of 23.5 percent, far short of the top marginal rate of 37 percent. That is similar to the effective rate paid by the average iron and steel worker or a high school special education teacher in Rhode Island.
The Paying a Fair Share Act would ensure that the highest-earning Americans pay at least a 30% effective tax rate. The bill would apply only to taxpayers with income over $1 million (including capital gains and dividends) – approximately 0.58% of taxpayers in 2024. The legislation includes a phase-in for additional tax liability for taxpayers earning between $1 million and $2 million, and would preserve the incentive for charitable giving.
The Paying a Fair Share Act is expected to raise nearly $120 billion in revenue over ten years, and would provide a backstop to limit future tax dodging by the ultrawealthy.
In addition to Senators Hirono and Whitehouse, the legislation is cosponsored by Senators Jeff Merkley (D-OR), Richard Blumenthal (D-CT), Chris Van Hollen (D-MD), Dick Durbin (D-IL), Amy Klobuchar (D-MN), Jack Reed (D-RI), Bernie Sanders (I-VT), Tammy Baldwin (D-WI), Elizabeth Warren (D-MA), Cory Booker (D-NJ), Peter Welch (D-VT), and Tina Smith (D-MN). U.S. Representative Brendan Boyle (D-PA) led the introduction of the legislation in the House of Representatives.
The full text of the legislation is available here.
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