Millionaires Surtax Act

This bill proposes to establish a new 10 percent surtax on the modified adjusted gross income of high-income individuals. This additional tax would apply to income exceeding specific thresholds, which are set at $2,000,000 for taxpayers filing a joint return. For all other taxpayers, including single filers, the surtax would apply to modified adjusted gross income above $1,000,000, and it is imposed in addition to any other existing taxes.

The legislation defines "modified adjusted gross income" as adjusted gross income reduced by certain investment interest deductions. It also includes special rules for nonresident aliens and citizens living abroad, and explicitly exempts charitable trusts from this surtax. Furthermore, the surtax is not to be treated as a tax for purposes of determining the amount of any credit or for section 55, and these new provisions are scheduled to take effect for taxable years beginning after December 31, 2026.