H.R. 1124 (112th): Fairness in Taxation Act of 2011

112^th Congress, 2011–2013. Text as of Mar 16, 2011 (Introduced).

HR 1124 IH

112th CONGRESS

1st Session

H. R. 1124

To amend the Internal Revenue Code of 1986 to impose increased rates of tax with respect to taxpayers with more than $1,000,000 taxable income, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

March 16, 2011

Ms. SCHAKOWSKY (for herself, Mr. GRIJALVA, Mr. ELLISON, Mr. JACKSON of Illinois, Ms. EDWARDS, Mr. FILNER, Mr. NADLER, Mr. COHEN, Mr. YARMUTH, and Mr. DEFAZIO) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to impose increased rates of tax with respect to taxpayers with more than $1,000,000 taxable income, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Fairness in Taxation Act of 2011’.

SEC. 2. INCREASED TAX RATES FOR TAXPAYERS WITH MORE THAN $1,000,000 TAXABLE INCOME.

(a) In General-

(1) MARRIED INDIVIDUALS FILING JOINT RETURNS AND SURVIVING SPOUSES- The table contained in subsection (a) of section 1 is amended to read as follows:

If taxable income is:

The tax is:

Not over $69,000

15% of taxable income.

Over $69,000 but not over $139,350

$10,350, plus 28% of the excess over $69,000.

Over $139,350 but not over $212,300

$30,048, plus 31% of the excess over $139,350.

Over $212,300 but not over $379,150

$52,662.50, plus 36% of the excess over $212,300.

Over $379,150 but not over $1,000,000

$112,728.50, plus 39.6% of the excess over $379,150.

Over $1,000,000 but not over $10,000,000

$358,585.10, plus 45% of the excess over $1,000,000.

Over $10,000,000 but not over $20,000,000

$4,408,585.10, plus 46% of the excess over $10,000,000.

Over $20,000,000 but not over $100,000,000

$9,008,585.10, plus 47% of the excess over $20,000,000.

Over $100,000,000 but not over $1,000,000,000

$46,608,585.10, plus 48% of the excess over $100,000,000.

Over $1,000,000,000

$478,608,585.10, plus 49% over the excess over $1,000,000,000.

(2) HEADS OF HOUSEHOLD- The table contained in subsection (b) of section 1 of such Code is amended to read as follows:

If taxable income is:

The tax is:

Not over $46,250

15% of taxable income.

Over $46,250 but not over $119,400

$6,937.50, plus 28% of the excess over $46,250.

Over $119,400 but not over $193,350

$27,419.50, plus 31% of the excess over $119,400.

Over $193,350 but not over $379,150

$50,344, plus 36% of the excess over $193,350.

Over $379,150 but not over $1,000,000

$117,232, plus 39.6% of the excess over $379,150.

Over $1,000,000 but not over $10,000,000

$363,088.60, plus 45% of the excess over $1,000,000.

Over $10,000,000 but not over $20,000,000

$4,413,088.60, plus 46% of the excess over $10,000,000.

Over $20,000,000 but not over $100,000,000

$9,013,088.60, plus 47% of the excess over $20,000,000.

Over $100,000,000 but not over $1,000,000,000

$46,613,088.60, plus 48% of the excess over $100,000,000.

Over $1,000,000,000

$478,613,088.60, plus 49% of the excess over $1,000,000,000.

(3) UNMARRIED INDIVIDUALS (OTHER THAN SURVIVING SPOUSES AND HEADS OF HOUSEHOLDS)- The table contained in subsection (c) of section 1 of such Code is amended to read as follows:

If taxable income is:

The tax is:

Not over $34,500

15% of taxable income.

Over $34,500 but not over $83,600

$5,175, plus 28% of the excess over $34,500.

Over $83,600 but not over $174,400

$18,923, plus 31% of the excess over $83,600.

Over $174,400 but not over $379,150

$47,071, plus 36% of the excess over $174,400.

Over $379,150 but not over $1,000,000

$120,781, plus 39.6% of the excess over $379,150.

Over $1,000,000 but not over $10,000,000

$366,637.60, plus 45% of the excess over $1,000,000.

Over $10,000,000 but not over $20,000,000

$4,416,637.60, plus 46% of the excess over $10,000,000.

Over $20,000,000 but not over $100,000,000

$9,016,637.60, plus 47% of the excess over $20,000,000.

Over $100,000,000 but not over $1,000,000,000

$46,616,637.60, plus 48% of the excess over $100,000,000.

Over $1,000,000,000

$478,616,637.60, plus 49% of the excess over $1,000,000,000.

(4) MARRIED INDIVIDUALS FILING SEPARATE RETURNS- The table contained in subsection (d) of section 1 of such Code is amended to read as follows:

If taxable income is:

The tax is:

Not over $34,500

plus 15% of taxable income.

Over $34,500 but not over $69,675

$5,175, plus 28% of the excess over $34,500.

Over $69,675 but not over $106,150

$15,024, plus 31% of the excess over $69,675.

Over $106,150 but not over $189,575

$26,331.25, plus 35% of the excess over $106,150.

Over $189,575 but not over $500,000

$55,530, plus 39.6% of the excess over $189,575.

Over $500,000 but not over $5,000,000

$178,458.30, plus 45% of the excess over $500,000.

Over $5,000,000 but not over $10,000,000

$2,203,458.30, plus 46% of the excess over $5,000,000.

Over $10,000,000 but not over $50,000,000

$4,503,458.30, plus 47% of the excess over $10,000,000.

Over $50,000,000 but not over $500,000,000

$23,303,458.30, plus 48% of the excess over $50,000,000.

Over $500,000,000

$239,303,458.30, plus 49% of the excess over $500,000,000.

(b) Recapture of Lower Capital Gains Rates for Individuals Subject to Added Rate Brackets-

(1) IN GENERAL- Section 1 of such Code is amended by adding at the end the following new subsection:

‘(j) Special Rule for Capital Gains in Case of Taxable Income Subject to at Least 45-Percent Rate Bracket- If for the taxable year a taxpayer has taxable income in excess of the minimum dollar amount for the 45-percent rate bracket and has a net capital gain, then--
‘(1) the tax imposed by this section for the taxable year with respect to such excess shall be determined without regard to subsection (h), and
‘(2) the amount of net capital gain of the taxpayer taken into account for the taxable year under subsection (h) shall be reduced by the lesser of--
‘(A) such excess, or
‘(B) the net capital gain for the taxable year.
Any reduction in net capital gain under the preceding sentence shall be allocated between adjusted net capital gain, unrecaptured 1250 gain, and section 1202 gain in amounts proportionate to the amounts of each such gain.’.
(2) CONFORMING AMENDMENT- Paragraph (1) of section 1(h) of such Code is amended by striking ‘If a taxpayer has’ and inserting ‘Except to the extent provided in subsection (j), if a taxpayer has’.