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 amend-
ment, or spending limit amendment, to the Constitution. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Shared Responsibility 
in Preserving America’s Future Act’’. 
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SEC. 2. SURTAX ON MILLIONAIRES CONTINGENT ON CON-
GRESSIONAL 
PASSAGE 
OF 
A 
BALANCED 
BUDGET AMENDMENT OR SPENDING LIMIT 
AMENDMENT. 
(a) IN GENERAL.—Subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new part: 
‘‘PART VIII—SURTAX ON MILLIONAIRES 
‘‘Sec. 59B. Surtax on millionaires. 
‘‘SEC. 59B. SURTAX ON MILLIONAIRES. 
‘‘(a) GENERAL RULE.—In the case of a taxpayer 
other than a corporation for any taxable year beginning 
after 2012 and before 2023, there is hereby imposed (in 
addition to any other tax imposed by this subtitle) a tax 
equal to 5 percent of so much of the modified adjusted 
gross income of the taxpayer for such taxable year as ex-
ceeds the threshold amount. 
‘‘(b) THRESHOLD AMOUNT.—For purposes of this 
section— 
‘‘(1) IN GENERAL.—The threshold amount is 
$1,000,000. 
‘‘(2) INFLATION ADJUSTMENT.— 
‘‘(A) IN
GENERAL.—In the case of any 
taxable 
year 
beginning 
after 
2013, 
the 
$1,000,000 amount under paragraph (1) shall 
be increased by an amount equal to— 
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‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins, determined by substituting ‘calendar 
year 2012’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof. 
‘‘(B) ROUNDING.—If any amount as ad-
justed under paragraph (1) is not a multiple of 
$10,000, such amount shall be rounded to the 
next highest multiple of $10,000. 
‘‘(3) MARRIED
FILING
SEPARATELY.—In the 
case of a married individual filing separately for any 
taxable year, the threshold amount shall be one-half 
of the amount otherwise in effect under this sub-
section for the taxable year. 
‘‘(c) MODIFIED ADJUSTED GROSS INCOME.—For 
purposes of this section— 
‘‘(1) IN
GENERAL.—The term ‘modified ad-
justed gross income’ means adjusted gross income 
reduced by the excess of— 
‘‘(A) gross income from a trade or busi-
ness— 
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‘‘(i) which is not a passive activity 
(within the meaning of section 469(c)) 
with respect to the taxpayer, and 
‘‘(ii) with respect to which the tax-
payer pays wages to at least 1 full-time 
equivalent employee (as defined in section 
45R(d)(2) determined without regard to 
subsection (e)(1)(A)(iv) thereof), other 
than the taxpayer, over 
‘‘(B) the deductions which are properly al-
locable to such income. 
‘‘(2) REGULATIONS.—The Secretary shall pre-
scribe regulations similar to the regulations under 
section 469(l) for determining the income that is 
taken into account under paragraph (1)(A). 
‘‘(d) SPECIAL RULES.— 
‘‘(1) NONRESIDENT ALIEN.—In the case of a 
nonresident alien individual, only amounts taken 
into account in connection with the tax imposed 
under section 871(b) shall be taken into account 
under this section. 
‘‘(2) 
CITIZENS
AND
RESIDENTS
LIVING 
ABROAD.—The dollar amount in effect under sub-
section (a) shall be decreased by the excess of— 
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‘‘(A) the amounts excluded from the tax-
payer’s gross income under section 911, over 
‘‘(B) the amounts of any deductions or ex-
clusions disallowed under section 911(d)(6) 
with respect to the amounts described in sub-
paragraph (A). 
‘‘(3) CHARITABLE
TRUSTS.—Subsection (a) 
shall not apply to a trust all the unexpired interests 
in which are devoted to one or more of the purposes 
described in section 170(c)(2)(B). 
‘‘(4) NOT TREATED AS TAX IMPOSED BY THIS 
CHAPTER
FOR
CERTAIN
PURPOSES.—The tax im-
posed under this section shall not be treated as tax 
imposed by this chapter for purposes of determining 
the amount of any credit under this chapter or for 
purposes of section 55. 
‘‘(e) APPLICATION
OF SECTION CONTINGENT
ON 
BALANCED
BUDGET
OR
SPENDING
LIMIT
AMEND-
MENT.— 
‘‘(1) SUBMISSION OF AMENDMENT FOR RATIFI-
CATION.—This section shall not apply to any taxable 
year which begins before the date on which the 
President certifies that the Archivist of the United 
States has submitted to the States for their ratifica-
tion a proposed amendment to the Constitution of 
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the United States pursuant to a joint resolution en-
titled ‘Joint resolution proposing a balanced budget 
amendment to the Constitution of the United 
States.’ or ‘Joint resolution proposing a spending 
limit amendment to the Constitution of the United 
States.’. If the certification referred to in the pre-
ceding sentence is not made by the President before 
September 30, 2012, this section shall not apply to 
any taxable year. 
‘‘(2) RATIFICATION.—This section shall not 
apply to any taxable year beginning after December 
31, 2017, unless, on or before such date, such an 
amendment, by ratification, becomes valid to all in-
tents and purposes as part of the Constitution of the 
United States.’’. 
(b) CLERICAL AMENDMENT.—The table of parts for 
subchapter A of chapter 1 of the Internal Revenue Code 
of 1986 is amended by adding at the end the following 
new item: 
‘‘PART VIII. SURTAX ON MILLIONAIRES’’. 
(c) SECTION 15 NOT TO APPLY.—The amendment 
made by subsection (a) shall not be treated as a change 
in a rate of tax for purposes of section 15 of the Internal 
Revenue Code of 1986. 
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(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2012. 
Æ 
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