Paying a Fair Share Act of 2021

The Paying a Fair Share Act of 2021 proposes a new minimum federal income tax rate of 30% for individuals with an adjusted gross income exceeding $1 million. Often referred to as the "Buffett Rule," the bill is designed to ensure that high-income earners pay a higher percentage of their income in taxes than middle-class families, regardless of how much of their income comes from investments rather than wages.

For most citizens, this legislation would have no direct impact on their personal tax liability, as it specifically targets those in the highest income bracket. The bill includes a phase-in period for those earning just over $1 million and adjusts the income threshold annually for inflation to prevent the tax from affecting more taxpayers over time. Additionally, the bill allows for deductions for charitable contributions and accounts for existing payroll and alternative minimum taxes already paid.