Van Hollen, Whitehouse, Colleagues Reintroduce ‘Buffett Rule’ Bill to Ensure Wealthiest Americans Pay Their Fair Share in Taxes

Billionaire investor Warren Buffett famously highlighted the brokenness of our tax system when he lamented that he paid a lower tax rate than his secretary.  Today, Senators Chris Van Hollen (D-Md.), Sheldon Whitehouse (D-RI), and 12 Democratic Senate colleagues reintroduced the Paying a Fair Share Act to ensure that millionaires pay higher tax rates than middle-class Americans by enacting a 30-percent minimum tax on those with incomes over $1 million.

Joining Van Hollen and Whitehouse on the bill as original cosponsors are Senators Jeff Merkley (D-Ore.), Richard Blumenthal (D-Ct.), Dick Durbin (D-Ill.), Amy Klobuchar (D-Minn.), Jack Reed (D-R.I.), Mazie Hirono (D-Hawaii), Bernie Sanders (I-Vt.), Tammy Baldwin (D-Wis.), Elizabeth Warren (D-Mass.), Cory Booker (D-N.J.), Peter Welch (D-Vt.), and Tina Smith (D-Minn.).  Congressman Brendan Boyle (D-Pa.) led the introduction of the legislation in the House of Representatives.

“Our tax code is purposefully riddled with loopholes that allow billionaires and big corporations to use their fleets of accountants to avoid paying their fair share in taxes,” said Senator Whitehouse.  “As Republicans gear up to deliver even more budget-busting giveaways for their billionaire donors, I’m reintroducing this common-sense bill that ensures the ultra-wealthy can’t get away with paying a lower tax rate than teachers and firefighters.  De-corrupting the tax code would lift the economic pressure on working families and stem the billionaire freeloading that is so rampant across this administration.”

“When the very rich exploit loopholes to pay a lower tax rate than middle-class families, it’s clear that our tax code is long overdue for reforms.  While Donald Trump and Republicans want to further stack the deck in favor of corporations and the wealthy, we are fighting for fairness for working Americans.  This common-sense legislation simply asks the richest to chip in their fair share – so we can build an economy that invests in prosperity for all Americans,” said Senator Van Hollen.

“Millionaires and billionaires should not be paying a lower tax rate than working families—plain and simple,” said Senator Merkley.  “Making our tax code fairer starts with making sure that everyone is paying their fair share, paving the way for a stronger middle class here in America.”

“While working families in Illinois are doing their best to make ends meet, the exceedingly-wealthy are exploiting loopholes in the federal tax system to avoid paying their share,” said Senator Durbin.  “It’s about fairness.  I’m signing on to the Paying a Fair Share Act to restore fairness and integrity to the tax code.”

“The tax code is riddled with loopholes that stack the deck for the wealthy at the expense of hardworking middle-class families,” said Senator Reed.  “There is a lot we can do to make the tax code fairer and more just, and the Buffet Rule is a step in that direction.”

“Working families shouldn’t be paying more in taxes than billionaires—period,” said Senator Hirono.  “This legislation will help ensure that the wealthiest Americans are paying their fair share in taxes and limit their ability to weasel out of paying taxes in the future.  I’m proud to join my colleagues in introducing this bill to promote fairness in our tax code and hold the wealthiest in our country accountable.”

“Working families should not be paying more in taxes than the wealthiest Americans.  Period.  But right now, our system is rigged against teachers, firefighters, and nurses while letting Wall Street get massive tax breaks to pad their pockets. It’s just plain wrong,” said Senator Baldwin.  “This commonsense bill will level the playing field, help close the deficit, and ensure that the wealthiest among us pay their fair share in taxes.”

“Billionaires should not pay a lower tax rate than a special education teacher in Saint Paul, or a miner on the Iron Range,” said Senator Smith.  “It’s just plain not right, and this bill is a step forward in ensuring that billionaires pay their fair share of taxes.  This is commonsense legislation that will make our tax code fairer for all Americans.” 

“Republican tax giveaways to the wealthy have exploded the deficit and failed working families,” said Congressman Boyle.  “Now, instead of changing course, they’re pushing another massive handout to Donald Trump, Elon Musk, and their billionaire donors—paid for by raising costs on the middle class.  At a time when working Americans are struggling, it’s shameful to ask them to pay more so the ultra-rich can pay less.  We have a better idea – our bill instead restores fairness to our tax code and puts working people first.”

In 2022, the top .001% (or 1,538 households) earned at least $85.5 million, and paid an average federal tax rate of 23.5 percent, far short of the top marginal rate of 37 percent.  That is similar to the effective rate paid by the average iron and steel worker or a high school special education teacher in Rhode Island.

The Paying a Fair Share Act would ensure that the highest-earning Americans pay at least a 30% effective tax rate. The bill would apply only to taxpayers with income over $1 million (including capital gains and dividends) – approximately 0.58% of taxpayers in 2024.  The legislation includes a phase-in for additional tax liability for taxpayers earning between $1 million and $2 million, and would preserve the incentive for charitable giving.

The Paying a Fair Share Act is expected to raise nearly $120 billion in revenue over ten years, and would provide a backstop to limit future tax dodging by the ultrawealthy.

Full text of the bill is available here.