This legislation introduces an alternative maximum tax for low- and middle-income individuals. For qualified individuals, their tax liability under current law would not exceed 25.5 percent of their modified adjusted gross income that is above a specified cost-of-living exemption . A qualified individual is defined as someone whose modified adjusted gross income is less than 175 percent of this exemption, which is based on an annualized wage of $46,000 and adjusted for inflation and filing status. The bill also establishes a new surcharge on high-income individuals , applied in addition to existing taxes. This surcharge is tiered, starting at 5 percent for modified adjusted gross income exceeding $1,000,000, increasing to 10 percent for income over $2,000,000, and reaching 12 percent for income above $5,000,000. These income thresholds are subject to inflation adjustments and are increased for taxpayers filing joint returns. Both the alternative maximum tax and the high-income surcharge are set to apply to taxable years beginning after December 31, 2025.