Sponsors (4)
The bill raises new revenue from high earners starting in 2027 to support government priorities but increases the tax burden on high-income individuals and adds compliance and administrative complexity.
Lower- and middle-income taxpayers are largely unaffected in the near term because the surcharge only applies to high-income individuals beginning in 2027.
Congress (and taxpayers broadly) gains a mechanism to raise revenue by imposing a surcharge on high-income individuals starting in 2027, which could be used to fund public services or reduce the deficit.
High-income taxpayers will pay higher federal income taxes beginning in 2027 due to the new surcharge.
High-income individuals and businesses they control may see reduced after-tax income, which could lead to lower investment or hiring decisions.
Taxpayers and the IRS will face added compliance complexity and administrative costs from required IRS rulemaking and implementation of the surcharge.
Based on analysis of 2 sections of legislative text.
Creates a new surtax (surcharge) on high‑income individuals by adding a new part to Subchapter A of the Internal Revenue Code, effective for taxable years after 2026.
Official title: Amend the Internal Revenue Code of 1986 to impose a surtax on high income individuals.
Introduced April 15, 2026 by Christopher Van Hollen · Last progress April 15, 2026
Imposes a new surtax on very high‑income individuals by adding a new part to Subchapter A of the Internal Revenue Code. The change is labeled a surcharge on high‑income individuals and applies to taxable years beginning after December 31, 2026. The bill updates the table of parts to list the new surtax part and clarifies that the technical amendment does not count as a change in tax rate for purposes of an identified code cross‑reference; the full text of the surtax rate, thresholds, and exceptions is not provided in the materials supplied.