[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1723 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 1723
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
April 25, 2013
Ms. Schakowsky (for herself, Mr. Conyers, Ms. Edwards, Ms. McCollum,
Mr. Yarmuth, Ms. Lee of California, and Mr. Gutierrez) 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 2013''.
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 of
the Internal Revenue Code of 1986 is 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 in subsection
(b) of section 1 of such Code is 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 in subsection (c) of
section 1 of such Code is 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 in subsection (d) of section 1 of such Code is
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 Code is amended by adding at the end the following new
paragraph:
``(9) Special rule for taxable years beginning after
2013.--In prescribing the tables under paragraph (1) which
apply with respect to taxable years beginning in a calendar
year after 2013, the cost-of-living adjustment under paragraph
(3) shall be determined by substituting `2012' for `1992' in
subparagraph (B) thereof.''.
(6) Conforming amendment.--Section 1 of such Code is
amended by striking subsection (i).
(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. Any term used
in this subsection which is also used in subsection (h) shall
have the meaning given such term in subsection (h).''.
(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''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2012.
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