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.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Shared Responsibility in Preserving 
America's Future Act''.

SEC. 2. SURTAX ON MILLIONAIRES CONTINGENT ON CONGRESSIONAL 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 exceeds 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--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2012' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                    ``(B) Rounding.--If any amount as adjusted 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 subsection for the taxable year.
    ``(c) Modified Adjusted Gross Income.--For purposes of this 
section--
            ``(1) In general.--The term `modified adjusted gross 
        income' means adjusted gross income reduced by the excess of--
                    ``(A) gross income from a trade or business--
                            ``(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 taxpayer 
                        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 allocable 
                to such income.
            ``(2) Regulations.--The Secretary shall prescribe 
        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 subsection (a) shall be decreased by the 
        excess of--
                    ``(A) the amounts excluded from the taxpayer's 
                gross income under section 911, over
                    ``(B) the amounts of any deductions or exclusions 
                disallowed under section 911(d)(6) with respect to the 
                amounts described in subparagraph (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 imposed 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 Amendment.--
            ``(1) Submission of amendment for ratification.--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 
        ratification a proposed amendment to the Constitution of the 
        United States pursuant to a joint resolution entitled `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 
        preceding 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 intents 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.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2012.

Summary: Shared Responsibility in Preserving America's Future Act - Amends the Internal Revenue Code to impose, in taxable years beginning after 2012 and before 2023, an additional 5% tax on individual taxpayers whose modified adjusted gross income exceeds $1 million (adjusted for inflation after 2013). Defines "modified adjusted gross income" as adjusted gross income reduced by the excess of: (1) gross income from a trade or business which is not a passive activity and with respect to which wages are paid to at least one full-time equivalent employee, over (2) the tax deductions properly allocable to such income. 

Makes this additional tax contingent upon the submission and ratification of a proposed amendment to the Constitution requiring a balanced budget or limiting spending.