HB 19-25: Buffett Rule Act of 2019 (Passed)

[YE]

A BILL

To ensure high-income earners pay a fair share of Federal taxes.

Section 1: Short title

This Act may be cited as the “Buffett Rule Act of 2019”.

Section 2: Text

(a) In general.—Subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new part:

“PART VIII—Fair Share Tax on High-Income Taxpayers

“Sec. 59B. Fair share tax.

“SEC. 59B. Fair share tax.

“(a) General rule.—

“(1) PHASE-IN OF TAX.—In the case of any high-income taxpayer, there is hereby imposed for a taxable year (in addition to any other tax imposed by this subtitle) a tax equal to the product of— the amount determined under paragraph (2), and a fraction (not to exceed 1)—of  the taxpayer's adjusted gross income, over the dollar amount in effect under subsection (c)(1).

“(2) AMOUNT OF TAX.—The amount of tax determined under this paragraph is an amount equal to the excess (if any) of the tentative fair share tax for the taxable year, over

“(A) the excess of—

“(i) the sum of—

“(I) the regular tax liability (as defined in section 26(b)) for the taxable year, determined without regard to any tax liability determined under this section,

“(II) the tax imposed by section 55 for the taxable year, plus

“(III) the payroll tax for the taxable year, over

“(ii) the credits allowable under part IV of subchapter A (other than sections 27(a), 31, and 34).

“(b) Tentative fair share tax.—For purposes of this section—

“(1) IN GENERAL.—The tentative fair share tax for the taxable year is 30 percent of the excess of—

“(A) the adjusted gross income of the taxpayer, over

“(B) the modified charitable contribution deduction for the taxable year.

“(2) MODIFIED CHARITABLE CONTRIBUTION DEDUCTION.—For purposes of paragraph (1)—

“(A) IN GENERAL.—The modified charitable contribution deduction for any taxable year is an amount equal to the amount which bears the same ratio to the deduction allowable under section 170 (section 642(c) in the case of a trust or estate) for such taxable year as—

“(i) the amount of itemized deductions allowable under the regular tax (as defined in section 55) for such taxable year, determined after the application of section 68, bears to

“(ii) such amount, determined before the application of section 68.

“(B) TAXPAYER MUST ITEMIZE.—In the case of any individual who does not elect to itemize deductions for the taxable year, the modified charitable contribution deduction shall be zero.

“(c) High-Income taxpayer.—For purposes of this section—

“(1) IN GENERAL.—The term ‘high-income taxpayer’ means, with respect to any taxable year, any taxpayer (other than a corporation) with an adjusted gross income for such taxable year in excess of $1,000,000 (50 percent of such amount in the case of a married individual who files a separate return).

“(2) INFLATION ADJUSTMENT.—

“(A) IN GENERAL.—In the case of a taxable year beginning after 2020, the $1,000,000 amount under paragraph (1) shall be increased by an amount equal to— such dollar amount, multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2019’ for ‘calendar year 2016’ in subparagraph (A)(ii) thereof.

“(B) ROUNDING.—If any amount as adjusted under subparagraph (A) is not a multiple of $10,000, such amount shall be rounded to the next lowest multiple of $10,000.

“(d) Payroll tax.—For purposes of this section, the payroll tax for any taxable year is an amount equal to the excess of the taxes imposed on the taxpayer under sections 1401, 1411, 3101, 3201, and 3211(a) (to the extent such tax is attributable to the rate of tax in effect under section 3101) with respect to such taxable year or wages or compensation received during such taxable year, over the deduction allowable under section 164(f) for such taxable year.

“(e) Special rule for estates and trusts.—For purposes of this section, in the case of an estate or trust, adjusted gross income shall be computed in the manner described in section 67(e).

“(f) Not treated as tax imposed by this chapter for certain purposes.—The tax imposed under this section shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit under this chapter (other than the credit allowed under section 27(a)) or for purposes of section 55.”.

(b) Clerical amendment.—The table of parts for subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:

“PART VIII—FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS”.

(c) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2019.

Sponsor: YE
72 hours to debate.

[YE]

This is taken from a Senate Dems RL proposal that I believe got 51 Senate votes including 1 Republican back in 2012 and gets introduced every 2 years. With Adam wanting to balance the budget and a reappeal of paygo loaming, we’re going to have to raise revenues somehow and I think this will be a good start. This establishes a tax floor for the greedy millionaires and billionaires.

This is taken from RL so there may be more compatibility issues than I’d like and may need to be sorted out.   

[JGibson]

Introducing the Buffett Rule to Atlasia is sorely needed to make high-income earners pay their fair share in taxes.

[Attorney General, Senator-Elect, & Former PPT Dwarven Dragon]

Excellent bill that I will be pleased to support.

[Esteemed Jimmy]

I fully support this.

[Dr. MB]

Motion for a final vote

[YE]

I'll give 12 hours to object since this kinda got bumped down and we have a lot of pending votes anyway. Technically a vote should be opened though.

[YE]

A final vote is now open.

[YE]

Aye

[Attorney General, Senator-Elect, & Former PPT Dwarven Dragon]

Aye

[JGibson]

AYE

[fhtagn]

Nay

[Dr. MB]

Aye

[P. Clodius Pulcher did nothing wrong]

Aye

[Coastal Elitist]

Nay

[YE]

Passes 5-2-0-2.

[YE]

A BILL

To ensure high-income earners pay a fair share of Federal taxes.

Section 1: Short title

This Act may be cited as the “Buffett Rule Act of 2019”.

Section 2: Text

(a) In general.—Subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new part:

“PART VIII—Fair Share Tax on High-Income Taxpayers

“Sec. 59B. Fair share tax.

“SEC. 59B. Fair share tax.

“(a) General rule.—

“(1) PHASE-IN OF TAX.—In the case of any high-income taxpayer, there is hereby imposed for a taxable year (in addition to any other tax imposed by this subtitle) a tax equal to the product of— the amount determined under paragraph (2), and a fraction (not to exceed 1)—of  the taxpayer's adjusted gross income, over the dollar amount in effect under subsection (c)(1).

“(2) AMOUNT OF TAX.—The amount of tax determined under this paragraph is an amount equal to the excess (if any) of the tentative fair share tax for the taxable year, over

“(A) the excess of—

“(i) the sum of—

“(I) the regular tax liability (as defined in section 26(b)) for the taxable year, determined without regard to any tax liability determined under this section,

“(II) the tax imposed by section 55 for the taxable year, plus

“(III) the payroll tax for the taxable year, over

“(ii) the credits allowable under part IV of subchapter A (other than sections 27(a), 31, and 34).

“(b) Tentative fair share tax.—For purposes of this section—

“(1) IN GENERAL.—The tentative fair share tax for the taxable year is 30 percent of the excess of—

“(A) the adjusted gross income of the taxpayer, over

“(B) the modified charitable contribution deduction for the taxable year.

“(2) MODIFIED CHARITABLE CONTRIBUTION DEDUCTION.—For purposes of paragraph (1)—

“(A) IN GENERAL.—The modified charitable contribution deduction for any taxable year is an amount equal to the amount which bears the same ratio to the deduction allowable under section 170 (section 642(c) in the case of a trust or estate) for such taxable year as—

“(i) the amount of itemized deductions allowable under the regular tax (as defined in section 55) for such taxable year, determined after the application of section 68, bears to

“(ii) such amount, determined before the application of section 68.

“(B) TAXPAYER MUST ITEMIZE.—In the case of any individual who does not elect to itemize deductions for the taxable year, the modified charitable contribution deduction shall be zero.

“(c) High-Income taxpayer.—For purposes of this section—

“(1) IN GENERAL.—The term ‘high-income taxpayer’ means, with respect to any taxable year, any taxpayer (other than a corporation) with an adjusted gross income for such taxable year in excess of $1,000,000 (50 percent of such amount in the case of a married individual who files a separate return).

“(2) INFLATION ADJUSTMENT.—

“(A) IN GENERAL.—In the case of a taxable year beginning after 2020, the $1,000,000 amount under paragraph (1) shall be increased by an amount equal to— such dollar amount, multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2019’ for ‘calendar year 2016’ in subparagraph (A)(ii) thereof.

“(B) ROUNDING.—If any amount as adjusted under subparagraph (A) is not a multiple of $10,000, such amount shall be rounded to the next lowest multiple of $10,000.

“(d) Payroll tax.—For purposes of this section, the payroll tax for any taxable year is an amount equal to the excess of the taxes imposed on the taxpayer under sections 1401, 1411, 3101, 3201, and 3211(a) (to the extent such tax is attributable to the rate of tax in effect under section 3101) with respect to such taxable year or wages or compensation received during such taxable year, over the deduction allowable under section 164(f) for such taxable year.

“(e) Special rule for estates and trusts.—For purposes of this section, in the case of an estate or trust, adjusted gross income shall be computed in the manner described in section 67(e).

“(f) Not treated as tax imposed by this chapter for certain purposes.—The tax imposed under this section shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit under this chapter (other than the credit allowed under section 27(a)) or for purposes of section 55.”.

(b) Clerical amendment.—The table of parts for subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:

“PART VIII—FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS”.

(c) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2019.

House of Representatives
Passed in the House of Representatives 5-2-0-2

X YE