Sponsors (4)
Introduced April 15, 2026 by Christopher Van Hollen · Last progress April 15, 2026
The bill raises federal revenue by adding a surcharge on high-income earners starting in 2027—protecting low- and middle-income taxpayers in the short term—while increasing the tax burden on high earners and adding administrative complexity.
Low- and middle-income taxpayers: Not directly affected immediately because the surcharge targets high-income individuals beginning in 2027.
All Americans / Congress: Creates a mechanism to raise revenue from high earners that can be used to fund public services or reduce the federal deficit.
High-income taxpayers: Will face higher federal income taxes beginning in 2027 due to the new surcharge.
High-income taxpayers and businesses they control: Reduced after-tax income could lead to lower investment or hiring by affected individuals or firms.
Taxpayers and IRS administration: Implementing the surcharge will require IRS rulemaking and increase compliance complexity and administrative costs.
Based on analysis of 2 sections of legislative text.
Adds a new surtax on high‑income individuals to the Internal Revenue Code, effective for tax years starting after Dec 31, 2026.
Creates a new surtax on very high‑income individuals by adding a new part to the Internal Revenue Code that imposes an additional tax on high earners; the bill updates the tax code table and says the change is not treated as a tax rate change for a specified statutory purpose. The surtax applies to taxable years beginning after December 31, 2026; precise rate(s), thresholds, and technical details of the surcharge are not included in the provided text.