The bill introduces an alternative maximum tax for low- and middle-income individuals , effective for taxable years beginning after December 31, 2025. Under this provision, a qualified individual's tax liability under the standard income tax rules cannot exceed 25.5 percent of their modified adjusted gross income that is above a specified cost-of-living exemption . This exemption amount is set at a base of $46,000 for single filers, doubled for joint filers, and adjusted for inflation annually based on the Consumer Price Index for all urban consumers (CPI-U). The goal is to reduce the tax burden on individuals whose modified adjusted gross income is less than 175 percent of this cost-of-living exemption. Conversely, the legislation establishes a new surcharge on high-income individuals , also effective for taxable years beginning after December 31, 2025. This additional tax applies to non-corporate taxpayers with modified adjusted gross incomes exceeding $1,000,000. The surcharge is tiered, starting at 5 percent for income between $1,000,000 and $2,000,000, increasing to 10 percent for income between $2,000,000 and $5,000,000, and reaching 12 percent for income above $5,000,000. These income thresholds are subject to annual inflation adjustments, and for joint filers, the thresholds are increased by 50 percent. The overall intent of these amendments is to restructure the federal income tax system by providing relief to lower and middle earners while increasing contributions from the highest earners.