Sponsors (10)
The bill raises revenue by imposing a new surcharge on certain taxpayers and clarifies when it applies, but it increases tax bills for affected individuals and adds administrative and fairness complications for some filers.
High‑income taxpayers will pay a new surcharge starting in 2027, raising federal revenue that can be used for public services or deficit reduction.
The bill specifies an effective date and updates the Subchapter A table, giving taxpayers and the IRS clearer guidance and reducing legal uncertainty about when the surcharge applies.
Individuals subject to the surcharge will owe higher federal taxes beginning in 2027, reducing their after‑tax income.
Creating and administering a new surcharge increases IRS workload and compliance costs for taxpayers, imposing additional administrative burdens on the Treasury and taxpayers.
Excluding section 15 pro rata rules may produce uneven or more complex tax outcomes for taxpayers with short or split tax years who lose otherwise applicable pro rata protections.
Based on analysis of 2 sections of legislative text.
Adds a new surtax on high‑income individual taxpayers to the Internal Revenue Code, effective for tax years beginning after Dec 31, 2026.
Official title: To amend the Internal Revenue Code of 1986 to impose a surtax on high income individuals.
Introduced April 15, 2026 by Donald Sternoff Beyer · Last progress April 15, 2026
Imposes a new surtax on high‑income individual taxpayers by adding a new part to Subchapter A of the Internal Revenue Code. The surtax applies to taxable years beginning after December 31, 2026 and requires the IRS to implement and administer the new tax provision. The bill updates the Subchapter A table of parts to list the new surtax part and specifies that the amendment creating the new part shall not be treated as a change in a tax rate for purposes of the rate‑proration rules in 26 U.S.C. § 15.