HR 8294
Millionaires Surtax Act
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- Passed Senate
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Bill overview
This bill, the Millionaires Surtax Act, proposes to add a new tax, called a surtax, on individuals with very high incomes. The surtax would be 10% of the taxpayer’s modified adjusted gross income, above $2,000,000, with a lower threshold of $1,000,000 for those not filing jointly. Certain deductions, such as investment interest, are excluded from the calculation, and specific rules apply to nonresident aliens and citizens living abroad. The surtax will take effect starting in 2027.
Key provisions
- Imposes a 10% surtax on modified adjusted gross income exceeding $2,000,000.
- Reduces the income threshold to $1,000,000 for unmarried taxpayers.
- Excludes investment interest deductions from the calculation of modified adjusted gross income.
- Provides special rules for nonresident aliens and citizens living abroad.
- Excludes trusts dedicated to charitable purposes from the surtax.
- Does not treat the surtax as a change in tax rates for certain credits.
- The surtax will apply to taxable years beginning after December 31, 2026.
Who is affected
- High-income individuals
- Taxpayers with modified adjusted gross income exceeding $2,000,000
- Nonresident aliens
- Citizens and residents living abroad
Notable changes
- Introduces a new tax category and rate specifically for high-income individuals.
- Adjusts the income threshold for the surtax based on filing status.
Sponsors
Official sponsors from legislative records.
Primary sponsor
Donald S. Beyer
Cosponsors
Eleanor Holmes [D-DC-At Large] Norton
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119th CONGRESS — 2d Session
H. R. 8294
IN THE HOUSE OF REPRESENTATIVES
A BILL
To amend the Internal Revenue Code of 1986 to impose a surtax on high income individuals.
This Act may be cited as the Millionaires Surtax Act
.
In the case of a taxpayer other than a corporation, there is hereby imposed (in addition to any other tax imposed by this subtitle) a tax equal to 10 percent of so much of the modified adjusted gross income of the taxpayer as exceeds $2,000,000.
In the case of any taxpayer other than a taxpayer making a joint return under section 6013 or a surviving spouse (as defined in section 2(a)), subsection (a) shall be applied by substituting $1,000,000
for $2,000,000
.
The dollar amount in effect under subsection (a) (after the application of subsection (b)) shall be decreased by the excess of—
the amounts excluded from the taxpayer’s gross income under section 911, over
The table of parts for subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:
The amendment made by subsection (a) shall not be treated as a change in a rate of tax for purposes of section 15 of the Internal Revenue Code of 1986.
The amendments made by this section shall apply to taxable years beginning after December 31, 2026.