“A bill 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 10% surcharge tax (in addition to other taxes) on the modified adjusted gross income (MAGI) of non-corporate taxpayers exceeding $2,000,000 ($1,000,000 for taxpayers not filing a joint return or qualifying as surviving spouses), where MAGI equals adjusted gross income reduced by any investment interest deduction (with estates and trusts using AGI as determined under section 67(e)). The surcharge includes special rules for (1) nonresident aliens (applying only to income effectively connected with U.S. trade or business under section 871(b)), (2) citizens and residents living abroad (reducing the threshold by net foreign earned income exclusions under section 911), (3) charitable trusts (exempt), and (4) non-treatment as a chapter 1 tax for credits or alternative minimum tax purposes; the amendments apply to taxable years beginning after December 31, 2026.