H.R.2534 - Paying a Fair Share Act of 2025 (119th Congress)
Summary
H.R.2534, the "Paying a Fair Share Act of 2025," introduces a new tax on high-income earners. It amends the Internal Revenue Code to impose a "fair share tax" on individuals with adjusted gross income exceeding $1,000,000. The tax is designed to ensure that high-income earners pay a minimum level of federal taxes, taking into account their regular tax liability, payroll taxes, and allowable credits.
Expected Effects
The bill aims to increase tax revenue from high-income earners. This revenue could potentially be used to reduce the federal deficit or fund government programs. The Act also expresses the sense of the House that Congress should enact broader tax reform to close loopholes and simplify the tax system.
Potential Benefits
- Increased government revenue from high-income earners.
- Potential for reduced federal deficit.
- Possible funding for public services and programs.
- May address perceived unfairness in the tax system.
- Could encourage broader tax reform discussions.
Most Benefited Areas:
Potential Disadvantages
- Potential for high-income earners to avoid the tax through tax planning strategies.
- May discourage investment and economic activity by high-income earners.
- Increased complexity of the tax code.
- Could face legal challenges based on fairness and equity.
- May disproportionately affect certain industries or professions.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's constitutional alignment is primarily related to Article I, Section 8, which grants Congress the power to lay and collect taxes. The Sixteenth Amendment, which allows Congress to levy an income tax, is also relevant. The bill does not appear to infringe upon any specific constitutional rights or protections, such as those outlined in the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).