# Plain Language Summary: Paying a Fair Share Act of 2025

This bill creates a new minimum tax for wealthy Americans. Starting in 2025, anyone earning more than $1 million per year would have to pay at least 30 percent of their income in federal taxes. The idea is to prevent high earners from using tax deductions and credits to reduce their tax bills below a certain floor. For example, if someone makes $2 million but currently pays only 15 percent in taxes through various deductions, this bill would require them to pay at least 30 percent instead. The $1 million threshold would increase each year with inflation, and married couples filing separately would have a $500,000 threshold.

The tax works gradually rather than all at once. It only applies to income above the $1 million threshold, and it phases in based on how much someone earns above that level. So someone making $1.1 million would pay the tax on a smaller portion of their income than someone making $5 million. The bill also allows people to still deduct charitable donations, though with some limitations. Importantly, this is an additional tax on top of regular income taxes, not a replacement for them.

The bill specifically targets wealthy individuals and does not apply to corporations. It's designed to ensure that high earners can't use investment income, business deductions, or other tax strategies to pay a lower overall tax rate than middle-class workers. Supporters argue this would raise billions in tax revenue and make the system fairer, while critics might argue it could affect investment and business decisions among the wealthy. The bill is positioned as a temporary measure while Congress considers broader tax reform.