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Bill

S 4306

Millionaires Surtax Act

119th Congress Introduced by Ruben Gallego and 2 co-sponsors

Imposes a new surtax on high-income individuals to raise federal revenue beyond the existing income tax.

Introduced in Senate
0
WeVote Research Nonpartisan
Bill Summary · S 4306

Summary of Bill S.4306 (Session 119) – United States

Title

A bill to amend the Internal Revenue Code of 1986 to impose a surtax on high income individuals.

Purpose and Intent

  • The bill seeks to modify the federal tax system by establishing an additional surtax specifically on high-income individuals.
  • The aim is to raise additional federal revenue by targeting top earners beyond existing income tax obligations.

Key Provisions (as described in the title and summary)

  • Imposition of a surtax: Introduces a new surtax applicable to individuals with high income. The exact income thresholds, rates, and calculation mechanics would be defined in the bill text (not specified in the provided summary, but typically would specify:
    • The applicable top marginal income thresholds (e.g., incomes above a certain amount).
    • The rate(s) of the surtax and how it interacts with the existing federal income tax.
    • Whether the surtax applies to all types of income (wages, investment, capital gains) or only certain categories.
    • How the surtax is calculated (e.g., a percentage of income above threshold, or a fixed percentage of modified adjusted gross income).
  • Interaction with current tax code: The surtax would likely be designed to sit on top of the current federal income tax structure. Detail on whether credits, deductions, or phaseouts are affected would be specified in the full text.

Note: The provided materials do not include the exact numerical rates, thresholds, or phaseouts. The bill would define these specifics.

Who Would Be Affected

  • High-income individuals: The surtax targets taxpayers whose income exceeds the established thresholds. This typically includes the top percentiles of earners, depending on the defined cutoff.
  • Taxpayers and the broader economy: While aimed at top earners, the surtax could have downstream effects on investment, employment, and behavior of high-income households. Administrative and compliance impacts would fall on the Internal Revenue Service (IRS) and tax professionals.

Procedural and Timeline Aspects

  • Introduced in the Senate: The bill was introduced and assigned a number (S. 4306) on 2026-04-15.
  • Read twice and referred: On 2026-04-15, the bill was read twice and referred to the Senate Committee on Finance for consideration.
  • Sponsors:
    • Primary sponsors (not listed in the provided text) include co-sponsors:
    • Ruben Gallego
    • Chris Van Hollen
    • Jeff Merkley
  • Next steps: As with most Senate bills, after referral to the Committee on Finance, the committee may:
    • Hold hearings
    • Mark up (amend) the bill
    • Report it to the full Senate with or without recommendation
    • If reported, the bill would proceed to floor consideration in the Senate (and potentially to conference with the House if similar legislation advances there)

Potential Impacts (Policy Implications)

  • Revenue: A surtax on high-income individuals would be designed to increase federal revenue, potentially to fund programs, debt reduction, or deficit considerations.
  • Equity and incentives: Depending on design, the surtax could affect perceived fairness, saving/investment incentives, and marginal tax rates for top earners.
  • Administrative considerations: Implementation would require IRS guidance on calculation, withholding, estimated tax obligations, and enforcement.

If you’d like, I can tailor this summary further once the bill’s text is available to specify the exact surtax rate(s), income thresholds, interaction with existing credits/deductions, and sunset provisions (if any).

Compiled from official sources — confirm details with the bill’s official record.

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