Rep. Beyer Introduces the Millionaires Surtax Act to Add 10% Tax on Incomes Over $2 Million
The Millionaires Surtax Act is currently in the early stages of the legislative process. It was recently sent to the House Committee on Ways and Means for review. There are no upcoming votes scheduled at this time.
This bill is supported only by Democrats and faces a difficult path in a divided Congress where tax hikes are often blocked by the opposing party.
High-earning small business owners who report business income on their personal tax returns (pass-through entities like S-corps and LLCs) could face this additional 10% surtax if their modified adjusted gross income exceeds $1 million (single) or $2 million (joint). This would significantly increase their effective tax rate on income above those thresholds, potentially reducing capital available for reinvestment or expansion.
“there is hereby imposed (in addition to any other tax imposed by this subtitle) a tax equal to 10 percent of so much of the modified adjusted gross income of the taxpayer as exceeds $2,000,000.”
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
No votes have been recorded for this legislation yet.
The story focuses on Senator Chris Van Hollen's Working Americans' Tax Cut Act, which proposes exempting those earning under $46,000 from income taxes, funded by a new surtax on millionaires. The proposal has faced internal party criticism for prioritizing tax cuts over healthcare expansion.
Representative Don Beyer reintroduced the Millionaires Surtax Act on Tax Day, calling it an 'urgently needed plan to restore fairness to the tax code' and fight accelerating inequality. The bill would apply a 10% surtax on incomes over $1 million for individuals and $2 million for couples.
Senator Van Hollen's proposal includes a tiered surtax on high earners to ensure the legislation is 'fully paid for.' The plan features a 5% surtax on incomes above $1 million, a 10% surtax on incomes above $2 million, and a 12% surtax on incomes above $5 million for joint filers.
Document Type
Congressional Bill
Official Title
Millionaires Surtax Act
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