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30% Minimum Tax Floor for Taxpayers Earning Over One Million Dollars

This bill establishes a new, additional tax designed to ensure that very high-income earners (those making over $1 million annually) pay at least 30% of their adjusted gross income in total federal taxes. The goal is to set a minimum tax floor for the wealthiest individuals, preventing them from lowering their effective tax rate below 30% using various deductions and loopholes. These changes apply to tax years beginning after December 31, 2022.
Key points
Imposes a 30% minimum tax rate on individuals whose annual adjusted gross income exceeds $1,000,000 ($500,000 for married filing separately).
The new tax acts as a top-up if the sum of existing taxes (income, AMT, payroll) falls below the 30% threshold, ensuring the effective tax rate reaches a minimum of 30%.
The $1,000,000 income threshold will be adjusted annually for inflation, starting after 2023.
Charitable contribution deductions are modified and included in the calculation, but only if the taxpayer itemizes deductions.
article Official text account_balance Process page
Expired
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Additional Information
Print number: 118_S_1173
Sponsor: Sen. Whitehouse, Sheldon [D-RI]
Process start date: 2023-04-18
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Paying a Fair Share Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_1173.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-04-18.

What are the main provisions?

Key points include:

  • Imposes a 30% minimum tax rate on individuals whose annual adjusted gross income exceeds $1,000,000 ($500,000 for married filing separately).
  • The new tax acts as a top-up if the sum of existing taxes (income, AMT, payroll) falls below the 30% threshold, ensuring the effective tax rate reaches a minimum of 30%.
  • The $1,000,000 income threshold will be adjusted annually for inflation, starting after 2023.
  • Charitable contribution deductions are modified and included in the calculation, but only if the taxpayer itemizes deductions.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Whitehouse, Sheldon [D-RI].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Taxes