I 

113TH CONGRESS 

2D SESSION H. R. 4512 

To amend the Internal Revenue Code of 1986 to establish a maximum 

rate of Federal, State, and local tax imposed on taxpayers. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 29, 2014 

Mr. JOLLY 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 establish 

a maximum rate of Federal, State, and local tax imposed 

on taxpayers. 

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 ‘‘Alternative Maximum 

5 Tax Act’’ or the ‘‘Max Tax Act’’. 

6 SEC. 2. MAXIMUM TAX IMPOSED. 

7 (a) IN GENERAL.—Part I of subchapter A of chapter 

8 1 of the Internal Revenue Code of 1986 is amended by 

9 inserting after section 3 the following new section: 


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1 ‘‘SEC. 4. MAXIMUM TAX IMPOSED. 

2 ‘‘(a) IN GENERAL.—Notwithstanding any other pro3 vision of this subtitle, the tax imposed under this chapter 

4 on a taxpayer other than a corporation for the taxable 

5 year shall not exceed the amount which when, added to 

6 the tax amounts described in subsection (b), bears the 

7 same ratio as 50 percent of adjusted gross income of the 

8 taxpayer for the taxable year bears to the adjusted gross 

9 income of the taxpayer for the taxable year. 

10 ‘‘(b) TAX AMOUNTS DESCRIBED.—For purposes this 

11 section, the tax amounts described in this subsection are 

12 the amounts of tax paid for any period (or allocable por13 tion thereof) in the taxable year under any of the following 

14 Federal, State, or local taxes: 

15 ‘‘(1) Air transportation taxes. 

16 ‘‘(2) Biodiesel fuel taxes. 

17 ‘‘(3) Cigarette taxes. 

18 ‘‘(4) Medicare tax. 

19 ‘‘(5) Social Security tax. 

20 ‘‘(6) Estate taxes. 

21 ‘‘(7) Insurance taxes, including insurance pre22 mium taxes, excise taxes on comprehensive health 

23 insurance plans, and individual health insurance 

24 mandate taxes. 

25 ‘‘(8) Federal unemployment taxes. 

26 ‘‘(9) Garbage taxes. 


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1 ‘‘(10) Gasoline taxes. 

2 ‘‘(11) Gift taxes. 

3 ‘‘(12) Hotel taxes. 

4 ‘‘(13) Import taxes. 

5 ‘‘(14) Income tax, including city, State, and 

6 county. 

7 ‘‘(15) Inheritance taxes. 

8 ‘‘(16) Interstate user diesel fuel taxes. 

9 ‘‘(17) Inventory taxes. 

10 ‘‘(18) Liquor taxes. 

11 ‘‘(19) Luxury taxes. 

12 ‘‘(20) Medicare taxes. 

13 ‘‘(21) Taxes enacted under the Patient Protec14 tion and Affordable Care Act, including the indi15 vidual mandate excise tax and the Medicare tax sur16 charge on investment income of high earning Ameri17 cans. 

18 ‘‘(22) Tangible personal property taxes. 

19 ‘‘(23) Real estate taxes. 

20 ‘‘(24) Sales taxes. 

21 ‘‘(25) Self-employment taxes. 

22 ‘‘(26) Service charge taxes. 

23 ‘‘(27) Sewer and water taxes. 

24 ‘‘(28) Special assessments (city and county). 

25 ‘‘(29) State unemployment taxes (SUTA). 


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1 ‘‘(30) Tanning taxes. 

2 ‘‘(31) Telephone-related taxes, including tele3 phone 911 service taxes, telephone Federal excise 

4 taxes, telephone Federal universal service fee taxes, 

5 telephone minimum usage surcharge taxes, telephone 

6 State and local taxes, telephone universal access 

7 taxes. 

8 ‘‘(32) Tire taxes. 

9 ‘‘(33) Use taxes (city, county, and State). 

10 ‘‘(34) Utility taxes. 

11 ‘‘(35) Vehicle registration taxes. 

12 ‘‘(36) Waste management taxes. 

13 ‘‘(37) Workers compensation taxes. 

14 ‘‘(c) REGULATIONS.—The Secretary shall prescribe 

15 such regulations as may be necessary to carry out this 

16 section.’’. 

17 (b) CLERICAL AMENDMENT.—The table of sections 

18 for part I of subchapter A of chapter 1 of the Internal 

19 Revenue Code of 1986 is amended by inserting after the 

20 item relating to section 3 the following new item: 

‘‘Sec. 4. Maximum tax imposed.’’. 

21 (c) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to taxable years beginning after 

23 the date of the enactment of this Act. 

Æ 


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