< Back to H.R. 1723 (113th Congress, 2013–2015)

Text of the Fairness in Taxation Act of 2013

This bill was introduced on April 25, 2013, in a previous session of Congress, but was not enacted. The text of the bill below is as of Apr 25, 2013 (Introduced).

I

113th CONGRESS

1st Session

H. R. 1723

IN THE HOUSE OF REPRESENTATIVES

April 25, 2013

(for herself,Mr. Conyers,Ms. Edwards,Ms. McCollum,Mr. Yarmuth,Ms. Lee of California, andMr. Gutierrez) introduced the following bill; which was referred to theCommittee 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.

1.

Short title

This Act may be cited as the Fairness in Taxation Act of 2013 .

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 insubsection (a) ofsection 1of the Internal Revenue Code of 1986is amended to read as follows:

If taxable income is: The tax is:
Not over $17,850 10% of taxable income
Over $17,850 but not over $72,500 $1,785, plus 15% of the excess over $17,850.
Over $72,500 but not over $146,400 $9,982.50, plus 25% of the excess over $72,500.
Over $146,400 but not over $223,050 $28,457.50, plus 28% of the excess over $146,400.
Over $223,050 but not over $398,350 $49,919.50, plus 33% of the excess over $223,050.
Over $398,350 but not over $450,000 $107,768.50, plus 35% of the excess over $398,350.
Over $450,000 but not over $1,000,000 $125,846, plus 39.6% of the excess over $450,000.
Over $1,000,000 but not over $10,000,000 $343,646, plus 45% of the excess over $1,000,000.
Over $10,000,000 but not over $20,000,000 $4,393,646, plus 46% of the excess over $10,000,000.
Over $20,000,000 but not over $100,000,000 $8,993,646, plus 47% of the excess over $20,000,000.
Over $100,000,000 but not over $1,000,000,000 $46,593,646, plus 48% of the excess over $100,000,000.
Over $1,000,000,000 $478,593,646, plus 49% over the excess over $1,000,000,000.
(2)

Heads of household

The table contained insubsection (b) of section 1 of such Codeis amended to read as follows:

If taxable income is: The tax is:
Not over $12,750 10% of taxable income.
Over $12,750 but not over $48,600 $1,275, plus 15% of the excess over $12,750.
Over $48,600 but not over $125,450 $6,652.50, plus 25% of the excess over $48,600.
Over $125,450 but not over $203,150 $25,865, plus 28% of the excess over $125,450.
Over $203,150 but not over $398,350 $47,621, plus 33% of the excess over $203,150.
Over $398,350 but not over $425,000 $112,037, plus 35% of the excess over $398,350.
Over $425,000 but not over $1,000,000 $121,364.50, plus 39.6% of the excess over $425,000.
Over $1,000,000 but not over $10,000,000 $349,064.50, plus 45% of the excess over $1,000,000.
Over $10,000,000 but not over $20,000,000 $4,399,064.50, plus 46% of the excess over $10,000,000.
Over $20,000,000 but not over $100,000,000 $8,999,064.50, plus 47% of the excess over $20,000,000.
Over $100,000,000 but not over $1,000,000,000 $46,599,064.50, plus 48% of the excess over $100,000,000.
Over $1,000,000,000 $478,599,064.50, plus 49% of the excess over $1,000,000,000.
(3)

Unmarried individuals (other than surviving spouses and heads of households)

The table contained insubsection (c) of section 1 of such Codeis amended to read as follows:

If taxable income is: The tax is:
Not over $8,925 10% of taxable income
Over $8,925 but not over $36,250 $892.50, plus 15% of the excess over $8,925.
Over $36,250 but not over $87,850 $4,991.25, plus 25% of the excess over $36,250.
Over $87,850 but not over $183,250 $17,891.25, plus 28% of the excess over $87,850.
Over $183,250 but not over $398,350 $44,603.25, plus 33% of the excess over $183,250.
Over $398,350 but not over $400,000 $115,586.25, plus 35% of the excess over $398,350.
Over $400,000 but not over $1,000,000 $116,163.75, plus 39.6% of the excess over $400,000.
Over $1,000,000 but not over $10,000,000 $353,763.75, plus 45% of the excess over $1,000,000.
Over $10,000,000 but not over $20,000,000 $4,403,763.75, plus 46% of the excess over $10,000,000.
Over $20,000,000 but not over $100,000,000 $9,003,763.75, plus 47% of the excess over $20,000,000.
Over $100,000,000 but not over $1,000,000,000 $46,603,763.75, plus 48% of the excess over $100,000,000.
Over $1,000,000,000 $478,603,763.75, plus 49% of the excess over $1,000,000,000.
(4)

Married individuals filing separate returns

The table contained insubsection (d) of section 1 of such Codeis amended to read as follows:

If taxable income is: The tax is:
Not over $8,925 10% of taxable income
Over $8,925 but not over $36,250 $892.50, plus 15% of the excess over $8,925.
Over $36,250 but not over $73,200 $4,991.25, plus 25% of the excess over $36,250.
Over $73,200 but not over $111,525 $14,228.75, plus 28% of the excess over $73,200.
Over $111,525 but not over $199,175 $24,959.75, plus 33% of the excess over $111,525.
Over $199,175 but not over $225,000 $53,884.25, plus 35% of the excess over $199,175
Over $225,000 but not over $500,000 $62,923, plus 39.6% of the excess over $225,000.
Over $500,000 but not over $5,000,000 $171,823, plus 45% of the excess over $500,000.
Over $5,000,000 but not over $10,000,000 $2,196,823, plus 46% of the excess over $5,000,000.
Over $10,000,000 but not over $50,000,000 $4,496,823, plus 47% of the excess over $10,000,000.
Over $50,000,000 but not over $500,000,000 $23,296,823, plus 48% of the excess over $50,000,000.
Over $500,000,000 $239,296,823, plus 49% of the excess over $500,000,000.
(5)

Inflation adjustment

Subsection (f) of section 1 of such Codeis amended by adding at the end the following new paragraph:

(9)

Special rule for taxable years beginning after 2013

In prescribing the tables underparagraph (1)which apply with respect to taxable years beginning in a calendar year after 2013, the cost-of-living adjustment underparagraph (3)shall be determined by substituting2012for1992insubparagraph (B)thereof.

.

(6)

Conforming amendment

Section 1 of such Codeis amended by strikingsubsection (i).

(b)

Recapture of lower capital gains rates for individuals subject to added rate brackets

(1)

In general

Section 1 of such Codeis 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 tosubsection (h), and

(2)

the amount of net capital gain of the taxpayer taken into account for the taxable year undersubsection (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, andsection 1202gain in amounts proportionate to the amounts of each such gain. Any term used in this subsection which is also used insubsection (h)shall have the meaning given such term insubsection (h).

.

(2)

Conforming amendment

Paragraph (1) of section 1(h) of such Codeis amended by strikingIf a taxpayer hasand insertingExcept to the extent provided insubsection (j), if a taxpayer has.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2012.