“To amend the Internal Revenue Code of 1986 to impose a surtax on high income individuals.”
No CRS summary available for this bill.
This section establishes a new 10% surcharge tax on the modified adjusted gross income (MAGI, defined as adjusted gross income reduced by investment interest deductions) of non-corporate taxpayers exceeding $2 million ($1 million for taxpayers other than those filing joint returns under IRC §6013 or surviving spouses). The surcharge does not apply to charitable trusts; includes special rules for nonresident aliens (limited to IRC §871(b) effectively connected income), U.S. citizens and residents living abroad (threshold reduced by net foreign earned income exclusions), and estates or trusts (AGI per IRC §67(e)); and is not treated as a chapter 1 tax for credits or the alternative minimum tax. The provision applies to taxable years beginning after December 31, 2026.