Max Tax Act

To amend the Internal Revenue Code of 1986 to establish a maximum rate of Federal, State, and local tax imposed on taxpayers. 1. Short title This Act may be cited as the Alternative Maximum Tax Act Max Tax Act 2. Maximum tax imposed (a) In general Part I of subchapter A of chapter 1 4. Maximum tax imposed (a) In general Notwithstanding any other provision of this subtitle, the tax imposed under this chapter on a taxpayer other than a corporation for the taxable year shall not exceed the amount which, when added to the tax amounts described in subsection (b), bears the same ratio as 50 percent of adjusted gross income of the taxpayer for the taxable year bears to the adjusted gross income of the taxpayer for the taxable year. (b) Tax amounts described For purposes of this section, the tax amounts described in this subsection are the amounts of tax paid for any period (or allocable portion thereof) in the taxable year under any of the following Federal, State, or local taxes: (1) Air transportation taxes. (2) Biodiesel fuel taxes. (3) Cigarette taxes. (4) Medicare tax. (5) Social Security tax. (6) Estate taxes. (7) Insurance taxes, including insurance premium taxes, excise taxes on comprehensive health insurance plans, and individual health insurance mandate taxes. (8) Federal unemployment taxes. (9) Garbage taxes. (10) Gasoline taxes. (11) Gift taxes. (12) Hotel taxes. (13) Import taxes. (14) Income tax, including city, State, and county. (15) Inheritance taxes. (16) Interstate user diesel fuel taxes. (17) Inventory taxes. (18) Liquor taxes. (19) Luxury taxes. (20) Medicare taxes. (21) Taxes enacted under the Patient Protection and Affordable Care Act, including the individual mandate excise tax and the Medicare tax surcharge on investment income of high earning Americans. (22) Tangible personal property taxes. (23) Real estate taxes. (24) Sales taxes. (25) Self-employment taxes. (26) Service charge taxes. (27) Sewer and water taxes. (28) Special assessments (city and county). (29) State unemployment taxes (SUTA). (30) Tanning taxes. (31) Telephone-related taxes, including telephone 911 service taxes, telephone Federal excise taxes, telephone Federal universal service fee taxes, telephone minimum usage surcharge taxes, telephone State and local taxes, telephone universal access taxes. (32) Tire taxes. (33) Use taxes (city, county, and State). (34) Utility taxes. (35) Vehicle registration taxes. (36) Waste management taxes. (37) Workers compensation taxes. (c) Regulations The Secretary shall prescribe such regulations as may be necessary to carry out this section. . (b) Clerical amendment The table of sections for part I of subchapter A of chapter 1 Sec. 4. Maximum tax imposed. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

Summary: Alternative Maximum Tax Act or the Max Tax Act Amends the Internal Revenue Code to provide for an alternative maximum tax for a taxpayer other than a corporate taxpayer. Limits the tax to 50% of the taxpayer's adjusted gross income, calculated by adding all federal, state, and local taxes paid by the taxpayer during the taxable year and dividing that amount by the taxpayer's adjusted gross income.