I 

112TH CONGRESS 

1ST SESSION H. R. 3105 

To amend the Internal Revenue Code of 1986 to impose a surcharge on 

high income individuals. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 5, 2011 

Mr. HASTINGS of Florida 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 surcharge on high income individuals. 

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 ‘‘Fairness in the Amer5 ican Tax Code Act of 2011’’. 

6 SEC. 2. SURCHARGE ON HIGH INCOME INDIVIDUALS. 

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

8 Internal Revenue Code of 1986 is amended by adding at 

9 the end the following new part: 


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1 ‘‘PART VIII—SURCHARGE ON HIGH INCOME 

2 INDIVIDUALS 

‘‘Sec. 59B. Surcharge on high income individuals. 

3 ‘‘SEC. 59B. SURCHARGE ON HIGH INCOME INDIVIDUALS. 

4 ‘‘(a) IN GENERAL.—In the case of a taxpayer other 

5 than a corporation, there is hereby imposed (in addition 

6 to any other tax imposed by this subtitle) a tax equal to— 

7 ‘‘(1) 5 percent of so much of the modified ad8 justed gross income of the taxpayer as exceeds 

9 $350,000 but does not exceed $500,000, 

10 ‘‘(2) 10 percent of so much of the modified ad11 justed gross income of the taxpayer as exceeds 

12 $500,000 but does not exceed $1,000,000, 

13 ‘‘(3) 15 percent of so much of the modified ad14 justed gross income of the taxpayer as exceeds 

15 $1,000,000 but does not exceed $10,000,000, and 

16 ‘‘(4) 20 percent of so much of the modified ad17 justed gross income of the taxpayer as exceeds 

18 $10,000,000. 

19 ‘‘(b) TAXPAYERS NOT MAKING A JOINT RETURN.— 

20 In the case of any taxpayer other than a taxpayer making 

21 a joint return under section 6013 or a surviving spouse 

22 (as defined in section 2(a)), subsection (a) shall be applied 

23 by substituting for each of the dollar amounts therein 

24 (after any increase determined under subsection (d)) a 

25 dollar amount equal to— 


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1 ‘‘(1) 50 percent of the dollar amount so in ef2 fect in the case of a married individual filing a sepa3 rate return, and 

4 ‘‘(2) 80 percent of the dollar amount so in ef5 fect in any other case. 

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

7 purposes of this section, the term ‘modified adjusted gross 

8 income’ means adjusted gross income reduced by any de9 duction allowed for investment interest (as defined in sec10 tion 163(d)). In the case of an estate or trust, adjusted 

11 gross income shall be determined as provided in section 

12 67(e). 

13 ‘‘(d) INFLATION ADJUSTMENTS.— 

14 ‘‘(1) IN GENERAL.—In the case of taxable years 

15 beginning after 2011, the dollar amounts in sub16 section (a) shall be increased by an amount equal 

17 to— 

18 ‘‘(A) such dollar amount, multiplied by 

19 ‘‘(B) the cost-of-living adjustment deter20 mined under section 1(f)(3) for the calendar 

21 year in which the taxable year begins, deter22 mined by substituting ‘calendar year 2010’ for 

23 ‘calendar year 1992’ in subparagraph (B) 

24 thereof. 


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1 ‘‘(2) ROUNDING.—If any amount as adjusted 

2 under paragraph (1) is not a multiple of $5,000, 

3 such amount shall be rounded to the next lowest 

4 multiple of $5,000. 

5 ‘‘(e) SPECIAL RULES.— 

6 ‘‘(1) NONRESIDENT ALIENS.—In the case of a 

7 nonresident alien individual, only amounts taken 

8 into account in connection with the tax imposed 

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

10 under this section. 

11 ‘‘(2) CITIZENS AND RESIDENTS LIVING

12 ABROAD.—The dollar amounts in effect under sub13 section (a) (after the application of subsections (b) 

14 and (d)) shall be decreased by the excess of— 

15 ‘‘(A) the amounts excluded from the tax16 payer’s gross income under section 911, over 

17 ‘‘(B) the amounts of any deductions or ex18 clusions disallowed under section 911(d)(6) 

19 with respect to the amounts described in sub20 paragraph (A). 

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

22 shall not apply to a trust all the unexpired interests 

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

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


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1 ‘‘(4) TAX NOT TREATED AS TAX IMPOSED BY

2 THIS CHAPTER FOR CERTAIN PURPOSES.—The tax 

3 imposed under this section shall not be treated as 

4 tax imposed by this chapter for purposes of deter5 mining the amount of any credit under this chapter 

6 or for purposes of section 55.’’. 

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

8 subchapter A of chapter 1 of such Code is amended by 

9 inserting after the item relating to part VII the following 

10 new item: 

‘‘PART VIII. SURCHARGE ON HIGH INCOME INDIVIDUALS’’. 

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

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

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

14 Revenue Code of 1986. 

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

16 this section shall apply to taxable years beginning after 

17 December 31, 2011. 

Æ 


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