I 

112TH CONGRESS 

2D SESSION H. R. 4265 

To amend the Internal Revenue Code of 1986 to impose a 5 percent tax 

on so much of adjusted gross income of any individual as exceeds 

$1,000,000, and to provide incentive for Congress to pass a balanced 

budget amendment, or spending limit amendment, to the Constitution. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 27, 2012 

Mr. CRAWFORD introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to impose 

a 5 percent tax on so much of adjusted gross income 

of any individual as exceeds $1,000,000, and to provide 

incentive for Congress to pass a balanced budget amendment, or spending limit amendment, to the Constitution. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Shared Responsibility 

5 in Preserving America’s Future Act’’. 


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1 SEC. 2. SURTAX ON MILLIONAIRES CONTINGENT ON CON2 GRESSIONAL PASSAGE OF A BALANCED 

3 BUDGET AMENDMENT OR SPENDING LIMIT 

4 AMENDMENT. 

5 (a) IN GENERAL.—Subchapter A of chapter 1 of the 

6 Internal Revenue Code of 1986 is amended by adding at 

7 the end the following new part: 

8 ‘‘PART VIII—SURTAX ON MILLIONAIRES 

‘‘Sec. 59B. Surtax on millionaires. 

9 ‘‘SEC. 59B. SURTAX ON MILLIONAIRES. 

10 ‘‘(a) GENERAL RULE.—In the case of a taxpayer 

11 other than a corporation for any taxable year beginning 

12 after 2012 and before 2023, there is hereby imposed (in 

13 addition to any other tax imposed by this subtitle) a tax 

14 equal to 5 percent of so much of the modified adjusted 

15 gross income of the taxpayer for such taxable year as ex16 ceeds the threshold amount. 

17 ‘‘(b) THRESHOLD AMOUNT.—For purposes of this 

18 section— 

19 ‘‘(1) IN GENERAL.—The threshold amount is 

20 $1,000,000. 

21 ‘‘(2) INFLATION ADJUSTMENT.— 

22 ‘‘(A) IN GENERAL.—In the case of any 

23 taxable year beginning after 2013, the 

24 $1,000,000 amount under paragraph (1) shall 

25 be increased by an amount equal to— 


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1 ‘‘(i) such dollar amount, multiplied by 

2 ‘‘(ii) the cost-of-living adjustment de3 termined under section 1(f)(3) for the cal4 endar year in which the taxable year be5 gins, determined by substituting ‘calendar 

6 year 2012’ for ‘calendar year 1992’ in sub7 paragraph (B) thereof. 

8 ‘‘(B) ROUNDING.—If any amount as ad9 justed under paragraph (1) is not a multiple of 

10 $10,000, such amount shall be rounded to the 

11 next highest multiple of $10,000. 

12 ‘‘(3) MARRIED FILING SEPARATELY.—In the 

13 case of a married individual filing separately for any 

14 taxable year, the threshold amount shall be one-half 

15 of the amount otherwise in effect under this sub16 section for the taxable year. 

17 ‘‘(c) MODIFIED ADJUSTED GROSS INCOME.—For 

18 purposes of this section— 

19 ‘‘(1) IN GENERAL.—The term ‘modified ad20 justed gross income’ means adjusted gross income 

21 reduced by the excess of— 

22 ‘‘(A) gross income from a trade or busi23 ness— 


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1 ‘‘(i) which is not a passive activity 

2 (within the meaning of section 469(c)) 

3 with respect to the taxpayer, and 

4 ‘‘(ii) with respect to which the tax5 payer pays wages to at least 1 full-time 

6 equivalent employee (as defined in section 

7 45R(d)(2) determined without regard to 

8 subsection (e)(1)(A)(iv) thereof), other 

9 than the taxpayer, over 

10 ‘‘(B) the deductions which are properly al11 locable to such income. 

12 ‘‘(2) REGULATIONS.—The Secretary shall pre13 scribe regulations similar to the regulations under 

14 section 469(l) for determining the income that is 

15 taken into account under paragraph (1)(A). 

16 ‘‘(d) SPECIAL RULES.— 

17 ‘‘(1) NONRESIDENT ALIEN.—In the case of a 

18 nonresident alien individual, only amounts taken 

19 into account in connection with the tax imposed 

20 under section 871(b) shall be taken into account 

21 under this section. 

22 ‘‘(2) CITIZENS AND RESIDENTS LIVING

23 ABROAD.—The dollar amount in effect under sub24 section (a) shall be decreased by the excess of— 


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1 ‘‘(A) the amounts excluded from the tax2 payer’s gross income under section 911, over 

3 ‘‘(B) the amounts of any deductions or ex4 clusions disallowed under section 911(d)(6) 

5 with respect to the amounts described in sub6 paragraph (A). 

7 ‘‘(3) CHARITABLE TRUSTS.—Subsection (a) 

8 shall not apply to a trust all the unexpired interests 

9 in which are devoted to one or more of the purposes 

10 described in section 170(c)(2)(B). 

11 ‘‘(4) NOT TREATED AS TAX IMPOSED BY THIS

12 CHAPTER FOR CERTAIN PURPOSES.—The tax im13 posed under this section shall not be treated as tax 

14 imposed by this chapter for purposes of determining 

15 the amount of any credit under this chapter or for 

16 purposes of section 55. 

17 ‘‘(e) APPLICATION OF SECTION CONTINGENT ON

18 BALANCED BUDGET OR SPENDING LIMIT AMEND19 MENT.— 

20 ‘‘(1) SUBMISSION OF AMENDMENT FOR RATIFI21 CATION.—This section shall not apply to any taxable 

22 year which begins before the date on which the 

23 President certifies that the Archivist of the United 

24 States has submitted to the States for their ratifica25 tion a proposed amendment to the Constitution of 


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1 the United States pursuant to a joint resolution en2 titled ‘Joint resolution proposing a balanced budget 

3 amendment to the Constitution of the United 

4 States.’ or ‘Joint resolution proposing a spending 

5 limit amendment to the Constitution of the United 

6 States.’. If the certification referred to in the pre7 ceding sentence is not made by the President before 

8 September 30, 2012, this section shall not apply to 

9 any taxable year. 

10 ‘‘(2) RATIFICATION.—This section shall not 

11 apply to any taxable year beginning after December 

12 31, 2017, unless, on or before such date, such an 

13 amendment, by ratification, becomes valid to all in14 tents and purposes as part of the Constitution of the 

15 United States.’’. 

16 (b) CLERICAL AMENDMENT.—The table of parts for 

17 subchapter A of chapter 1 of the Internal Revenue Code 

18 of 1986 is amended by adding at the end the following 

19 new item: 

‘‘PART VIII. SURTAX ON MILLIONAIRES’’. 

20 (c) SECTION 15 NOT TO APPLY.—The amendment 

21 made by subsection (a) shall not be treated as a change 

22 in a rate of tax for purposes of section 15 of the Internal 

23 Revenue Code of 1986. 


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1 (d) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2012. 

Æ 


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