Congress proposes 30% minimum tax on millionaires to fund public priorities

What it does

This bill imposes a new 30% minimum tax on high-income earners (those with adjusted gross income over $1 million, or $500,000 for married filing separately) starting in 2025. The tax applies only to the extent a taxpayer's total federal tax burden (regular income tax, alternative minimum tax, and payroll taxes, minus certain credits) falls below 30% of their income after accounting for charitable deductions. The bill is designed to ensure wealthy taxpayers pay at least a 30% effective tax rate.

Why we flagged it

The bill's core mechanism is a new minimum tax on high-income earners, structured as a floor on effective tax rates. It is straightforward progressive taxation policy, not a carve-out, subsidy, or deregulation.

What the text implies

• The tax applies only if current tax liability falls below 30%, meaning high-income earners with substantial charitable deductions or other credits may avoid or reduce the additional tax burden.
• The modified charitable contribution deduction calculation may incentivize high-income taxpayers to reduce charitable giving or restructure donations to minimize the tax.
• The inflation adjustment (tied to cost-of-living, rounded down to nearest $10,000) means the threshold will rise slowly, potentially narrowing the affected population over time.
• Payroll tax credit (section 164(f)) reduces the effective rate, creating a pathway for some high-income earners to lower their minimum tax liability.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

The bill directly increases tax revenue from high-income earners without affecting middle-class or lower-income taxpayers, potentially funding public services or deficit reduction. The 30% minimum tax rate is transparent and applies only to those earning over $1 million annually, concentrating the burden on the wealthiest segment of the population.

Who stands to gain

• U.S. federal government (increased tax revenue)
• public programs funded by federal revenue

Named in the bill

Internal Revenue Service, U.S. Department of the Treasury, high-income taxpayers (AGI >$1M), estates and trusts

Where it stands

15 cosponsors: 14 Democrats, 1 Independents.

• Apr 1, 2025 — Introduced · Congress.gov: “Introduced in Senate”
• Apr 1, 2025 — Referred to Senate Committee on Finance · Congress.gov: “Read twice and referred to the Committee on Finance”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.