118 HR 9873 IH: American Stability Act
U.S. House of Representatives
2024-09-27
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of contents(a)This Act may be cited as the American Stability Act
.(b)The table of contents for this Act is as follows:Sec. 1. Short title; table of contents.Title I—Minimum wageSec. 101. Minimum wage increases.Sec. 102. Tipped employees.Sec. 103. Scheduled repeal of separate minimum wage for newly hired employees who are less than 20 years old.Sec. 104. Publication of notice.Sec. 105. Promoting economic self-sufficiency for individuals with disabilities.Title II—Income tax modificationsSec. 201. Modification of income tax brackets based on annualized stability wage.Sec. 202. Surcharge on high income individuals, estates, and trusts.Sec. 203. Alternative maximum tax for low-income individuals.Title III—Earned income disallowanceSec. 301. Earned income disallowance.Title IV—Effective dateSec. 401. Effective date.<enum>I</enum><header>Minimum wage</header><section id="H7AEA820E972A4554A0227FCF7F4DF1D0" section-type="subsequent-section"><enum>101.</enum><header>Minimum wage increases</header><subsection id="H78FEDADABEE6447EB59D17B4FE30FF59"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 6(a)(1) of the Fair Labor Standards Act of 1938 (<external-xref legal-doc="usc" parsable-cite="usc/29/206">29 U.S.C. 206(a)(1)</external-xref>) is amended to read as follows:</text><quoted-block id="H56FC5B6A71FA421DB4AD1DEA8C243CDF" style="OLC"><paragraph id="H3F06B7D40F674DEC839BE1D6257895F2"><enum>(1)</enum><text>except as otherwise provided in this section, not less than—</text><subparagraph id="H8F390E38FC56403182FC7356DD849016"><enum>(A)</enum><text>$15.00 an hour for the first calendar year beginning after the date of enactment of the American Stability Act;</text></subparagraph><subparagraph id="H33F2D7D011E645EB9E5CBCD0DE5D503F"><enum>(B)</enum><text display-inline="yes-display-inline">for each calendar year during the interval period (as defined in subsection (g)), a minimum wage equal to the amount determined under this paragraph for the preceding year, increased by the lesser of—</text><clause id="HA7EE6AC2F2F444A9A842D236B0362780"><enum>(i)</enum><text>10 percent; or</text></clause><clause id="HA645B212DE7D463E86BBDE329EACC5AC"><enum>(ii)</enum><text display-inline="yes-display-inline">the amount necessary for the minimum wage to equal the stability wage for such calendar year; and</text></clause></subparagraph><subparagraph id="HA34E817C5AA9485ABD9728D579F811A4"><enum>(C)</enum><text display-inline="yes-display-inline">for each calendar year that begins after the interval period, the stability wage for such calendar year.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H2B744CE6CB62496FA39BB5B1AEE3E0D5"><enum>(b)</enum><header>Stability wage</header><text>Section 6 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/206">29 U.S.C. 206</external-xref>) is further amended by adding at the end the following:</text><quoted-block style="OLC" id="H89242E1047304056A43BCD4FA4C2E530" display-inline="no-display-inline"><subsection id="HDE1E09511B774623985A53038C8542FA"><enum>(h)</enum><header>Stability wage</header><paragraph id="H70184586D69A45D098222B8A68BFB62C"><enum>(1)</enum><header>In general</header><subparagraph id="H4375A08F88744DE69EAD307BE9FDAFB3"><enum>(A)</enum><header>Determination</header><text>The stability wage determined under this paragraph for a calendar year shall be an amount equal to the greater of—</text><clause id="HA67BC330BCD544C2A980F7D09DC2465C"><enum>(i)</enum><text>the average hourly earnings wage determined under paragraph (2) for that calendar year;</text></clause><clause id="H0B76B0AC88BB4EB6B232B7359FE15DED"><enum>(ii)</enum><text>the cost-of-living wage determined under paragraph (3) for that calendar year; or</text></clause><clause id="H6D67D68B53444551B58C9D02DAF27B22"><enum>(iii)</enum><text>the stability wage in effect for the preceding year.</text></clause></subparagraph><subparagraph id="H8943098748E84AC5AB1D97A18C19225D"><enum>(B)</enum><header>Rounding</header><text display-inline="yes-display-inline">If the amount determined under subparagraph (A) is not a multiple of 5 cents, such amount shall be rounded to the next higher multiple of 5 cents.</text></subparagraph></paragraph><paragraph id="H00B8C0D2D4274C168454222CEEFDE084"><enum>(2)</enum><header>Average hourly earnings wage</header><text>The average hourly earnings wage for any calendar year shall be an amount equal to $20.00, multiplied by the ratio of—</text><subparagraph id="H6BD81FA3C5E54E50B327BB0B710241CD"><enum>(A)</enum><text>the average hourly earnings for the year preceding such calendar year, to</text></subparagraph><subparagraph id="H5078698065254224AC333468744DDDE5"><enum>(B)</enum><text display-inline="yes-display-inline">the average hourly earnings for the year preceding the calendar year of the date of enactment of the American Stability Act.</text></subparagraph></paragraph><paragraph id="H1AD09CDF2069409288162F505387BB3D"><enum>(3)</enum><header>Cost-of-living wage</header><text>The cost-of-living wage for any calendar year shall be an amount equal to $20.00, multiplied by the ratio of—</text><subparagraph id="H7A337DAC101948DCA6501F2B5D24961B"><enum>(A)</enum><text>the CPI–U for the year preceding such calendar year, to</text></subparagraph><subparagraph id="HD449C2D149914986BCE7515378B530F3"><enum>(B)</enum><text display-inline="yes-display-inline">the CPI–U for the year preceding the calendar year of the date of enactment of the American Stability Act.</text></subparagraph></paragraph><paragraph id="H31D71258AE764C7080E5FE155C35DE7A"><enum>(4)</enum><header>Definitions</header><text>For the purposes of this paragraph and subsection (a)(1):</text><subparagraph id="HC3C519388D4D4015AD857277ADBE396B"><enum>(A)</enum><header>CPI–U</header><text display-inline="yes-display-inline">The term <quote>CPI–U</quote> means, when used with respect to a calendar year, the Consumer Price Index for all urban consumers, as published by the Bureau of Labor Statistics, for September of such year.</text></subparagraph><subparagraph id="H04967E3A69A641D9A165B2782AC83075"><enum>(B)</enum><header>Average hourly earnings</header><text display-inline="yes-display-inline">The term <quote>average hourly earnings</quote> means, when used with respect to a calendar year, the total private average hourly earnings from the data on average hourly and weekly earnings of production and nonsupervisory employees on private nonfarm payrolls by industry sector, seasonally adjusted, as published by the Bureau of Labor Statistics, for September of such year.</text></subparagraph><subparagraph id="HE2564F7056464D9DB2FD1C98AE93D481"><enum>(C)</enum><header>Interval period</header><text display-inline="yes-display-inline">The term <quote>interval period</quote> means the period—</text><clause id="HF2A46D2DC66D4287AC261C945E8D56E2"><enum>(i)</enum><text>beginning on the first day of the 1st calendar year beginning after the date of enactment of the American Stability Act; and</text></clause><clause id="H6307025A006B4916921DAA1C882426E6"><enum>(ii)</enum><text>ending at the close of the last day of the first calendar year for which the minimum wage under subsection (a)(1) equals the stability wage determined under paragraph (1) of this subsection for such calendar year.</text></clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section><section id="H8977D90B928741D68FA2FC5F1FEC5176"><enum>102.</enum><header>Tipped employees</header><subsection id="HE503D8FB513845A6B28419B7750DDACE"><enum>(a)</enum><header>Base minimum wage for tipped employees and tips retained by employees</header><paragraph id="HA20B59FD1EBC48959AE6D2B21D56A83E"><enum>(1)</enum><header>In general</header><text>Section 3(m)(2)(A) of the Fair Labor Standards Act of 1938 (<external-xref legal-doc="usc" parsable-cite="usc/29/203">29 U.S.C. 203(m)(2)(A)</external-xref>) shall be amended to read as follows:</text><quoted-block id="H436F3692895C4888A375390984D7BFF1" style="OLC"><subparagraph id="H8311DB6FFF094C649A1EFB7EDB99BF2C" indent="up1"><enum>(A)</enum><text display-inline="yes-display-inline">The wage required to be paid to a tipped employee shall be the wage set forth in section 6(a)(1). Any employee shall have the right to retain any tips received by such employee, except that this subsection shall not be construed to prohibit the pooling of tips among employees who customarily and regularly receive tips. An employer shall inform each employee of the right and exception provided under the preceding sentence.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H10BDE68AC0A64D68AC0A7CA0B9741207"><enum>(2)</enum><header>Effective date</header><text>The amendment made by subsection (a) shall take effect on January 1 of the first calendar year that begins after the date of enactment of this Act.</text></paragraph></subsection><subsection id="H19504285DE5C403B8A27A342BA75A279"><enum>(b)</enum><header>Penalties</header><text>Section 16 of the Fair Labor Standards Act of 1938 (<external-xref legal-doc="usc" parsable-cite="usc/29/216">29 U.S.C. 216</external-xref>) is amended—</text><paragraph id="H4E439BDFD75948ADA484D95BA241FF82"><enum>(1)</enum><text>in the third sentence of subsection (b), by inserting <quote>or used</quote> after <quote>kept</quote>; and</text></paragraph><paragraph id="H94F469C57F5048939D67C70A282F2252"><enum>(2)</enum><text>in the second sentence of subsection (e)(2), by inserting <quote>or used</quote> after <quote>kept</quote>.</text></paragraph></subsection></section><section id="HCF3D9B35A0FF4CA8885967D8A46ECDE9"><enum>103.</enum><header>Scheduled repeal of separate minimum wage for newly hired employees who are less than 20 years old</header><subsection id="H7567592C2F9E43D3A94C47D19490A15C"><enum>(a)</enum><header>In general</header><text>Section 6(g) of the Fair Labor Standards Act of 1938 (<external-xref legal-doc="usc" parsable-cite="usc/29/206">29 U.S.C. 206(g)</external-xref>), as amended by subsection (a), shall be repealed.</text></subsection><subsection id="H1092B11DCBAC46EC845FE76E594115D4"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The repeal made by subsection (a) shall take effect on January 1 of the first calendar year that begins after the date of enactment of this Act.</text></subsection></section><section id="H7219C98E6F5B47E6A9B8442B9D0FFFB1"><enum>104.</enum><header>Publication of notice; technical assistance</header><text display-inline="no-display-inline">Section 6 of the Fair Labor Standards Act of 1938 (<external-xref legal-doc="usc" parsable-cite="usc/29/206">29 U.S.C. 206</external-xref>), as amended by section 2(b), is further amended by adding at the end the following:</text><quoted-block id="HC9E1D8A065074EBD81A78D3978320A98" style="OLC"><subsection id="HAD28D1D28CE04930BFDAC9CDF4169C6A"><enum>(i)</enum><header>Publication of wage rates</header><text>Not later than 60 days prior to the effective date of any increase in the required wage determined under subsection (a)(1), the Secretary shall publish in the Federal Register and on the website of the Department of Labor a notice announcing each increase in such required wage.</text></subsection><subsection id="H7EA0DCB4731C464DA40759033FA314C9"><enum>(j)</enum><header>Transition assistance</header><text>Upon request, the Secretary shall provide—</text><paragraph id="H420010F22BD34981B900F7352A2ECBFB"><enum>(1)</enum><text>technical assistance and information to employers for the purposes of—</text><subparagraph id="H7B757F2CEAE04F39982778C65F092639"><enum>(A)</enum><text>assisting such employers to comply with subsection (a), as amended by the American Stability Act; and</text></subparagraph><subparagraph id="H7BCCA07EC11B4FB894A8D754C1079DC7"><enum>(B)</enum><text>ensuring continuing employment opportunities for individuals with disabilities who received a special minimum wage rate under this section 14(c) (as in effect on the day before the date of enactment of the American Stability Act); and</text></subparagraph></paragraph><paragraph id="H4DB2F51E0FEB43A5B27F5B2468F5A258"><enum>(2)</enum><text>information to individuals who were employed at a special minimum wage rate under section 14(c) (as in effect on the day before the date of enactment of the American Stability Act), which may include referrals to Federal or State entities with expertise in competitive integrated employment.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="H656F0666185348B38ECF092EDF781956"><enum>105.</enum><header>Promoting economic self-sufficiency for individuals with disabilities</header><subsection id="H9B8D27E8AC114C6D8841C777BEE61994"><enum>(a)</enum><header>Transition to fair wages for individuals with disabilities</header><paragraph id="HB5817351D8B743D1A5E3E20FD95F7117"><enum>(1)</enum><header>In general</header><text>Subparagraph (A) of section 14(c)(1) of the Fair Labor Standards Act of 1938 (<external-xref legal-doc="usc" parsable-cite="usc/29/214">29 U.S.C. 214(c)(1)</external-xref>) shall be amended to read as follows:</text><quoted-block id="HCCE9F9DEB40F492A90549C3388A1DED1" style="OLC"><subparagraph id="HACA21E4BB5D64D09B9F740361B4716AA" indent="up1"><enum>(A)</enum><text display-inline="yes-display-inline">at a rate that equals or exceeds, for each year, the wage set forth in section 6(a)(1).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H8D205E6E956343CF9104796B2420FB59"><enum>(2)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by paragraph (A) shall take effect on January 1 of the first calendar year that begins after the date of enactment of this Act.</text></paragraph></subsection><subsection id="H9D0AF891359A4DDDB9C9D5E3C53E9DA3"><enum>(b)</enum><header>Prohibition on new special certificates</header><paragraph id="H77F939E8F0E64E1E8DFD952DBF2D2E9A"><enum>(1)</enum><header>In general</header><text>Section 14(c) of the Fair Labor Standards Act of 1938 (<external-xref legal-doc="usc" parsable-cite="usc/29/214">29 U.S.C. 214(c)</external-xref>) is amended by adding at the end the following:</text><quoted-block id="H67AE323873654406A7DB3766E95B0DD0" style="OLC"><paragraph id="HF2BC761A414A458E83DD04F99C17FA68" indent="up1"><enum>(6)</enum><header>Prohibition on new special certificates</header><text>Notwithstanding paragraph (1), the Secretary shall not issue a special certificate under this subsection to an employer that was not issued a special certificate under this subsection before the date of enactment of the American Stability Act.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H038EA9BE18D848E38EC4597C624B8979"><enum>(2)</enum><header>Sunset</header><text>Section 14(c) of the Fair Labor Standards Act of 1938 (<external-xref legal-doc="usc" parsable-cite="usc/29/214">29 U.S.C. 214(c)</external-xref>), as amended by paragraph (2), is further amended by adding at the end the following:</text><quoted-block id="HEE524A6451CA4880845EA066FE6D09CF" style="OLC"><paragraph id="HA9637A676DA04BD9BDB020381083ABF1" indent="up1"><enum>(7)</enum><header>Sunset</header><text>On January 1 of the first calendar year that begins after the date of enactment of the American Stability Act, the authority to issue special certificates under paragraph (1) shall expire, and no special certificates issued under paragraph (1) shall have any legal effect .</text></paragraph><after-quoted-block>. </after-quoted-block></quoted-block></paragraph><paragraph id="HA5C629338180428C99041287E17AD488"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this paragraph shall take effect on the date of enactment of this Act.</text></paragraph></subsection></section><enum>I</enum><header>Income tax modifications</header><section id="H473F3B5B55284C85BB5E6E5CB96F14D9"><enum>1.</enum><header>Modification of income tax brackets based on annualized stability wage</header><subsection id="HE5C99F2FEB944D8E88D57FDDACAAD9F9"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/1">Section 1</external-xref> of the Internal Revenue Code of 1986 is amended by striking subsections (a), (b), (c), (d), and (e) and inserting the following new subsections:</text><quoted-block style="OLC" id="H1CEEF0FE6FB647B190C9904731C48698" display-inline="no-display-inline"><subsection id="HD809485BCD044D9FAC2E39F7541B30DD"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">There is hereby imposed on the taxable income of every individual, every estate, and every trust a tax determined under this section.</text></subsection><subsection id="H87B586FD25C349FC94E82F4413A9223F"><enum>(b)</enum><header>Amount of tax</header><text>The tax determined under this section shall be equal to—</text><paragraph id="H224FF510AF224982B826C6F1C3F8852E"><enum>(1)</enum><text>in the case of any taxpayer whose taxable income does not exceed the maximum bracket amount for the lowest tax bracket for the taxpayer’s filing status, the product of the percentage which constitutes such lowest tax bracket multiplied by such taxable income, and</text></paragraph><paragraph id="HECFE2AEE98B0415D9056FE375C2ED976"><enum>(2)</enum><text>in the case of any taxpayer whose taxable income exceeds the maximum bracket amount for such lowest tax bracket, the sum of—</text><subparagraph id="H6DEEC9C57C9B4516B5EA6570463688A7"><enum>(A)</enum><text>the maximum tax amount for each tax bracket for the taxpayer’s filing status with respect to which the taxpayer’s taxable income exceeds the maximum bracket amount for such tax bracket, plus</text></subparagraph><subparagraph id="HF3AF1FD884EE498987A4064FBAA54E4A"><enum>(B)</enum><text>the product of—</text><clause id="H01D1FCB8732244F0B8F1D635D490D985"><enum>(i)</enum><text>the percentage which constitutes the tax bracket for the taxpayer’s filing status which is next above the highest bracket amount for which an amount is included under subparagraph (A), multiplied by</text></clause><clause id="H693550199C284B33AD618AB7DEB55B6A"><enum>(ii)</enum><text>so much of the taxable income of the taxpayer as exceeds the maximum bracket amount of such highest tax bracket.</text></clause></subparagraph></paragraph></subsection><subsection id="H4AD86303D3E54C4BBFE228C8BD1B7F41"><enum>(c)</enum><header>Determination of maximum bracket amounts</header><paragraph id="H6C070B90A3DD44BEA4A5120F7D4C31A8"><enum>(1)</enum><header>Married individuals filing joint returns and surviving spouses</header><text>In the case of every married individual (as defined in section 7703) who makes a single return jointly with the individual’s spouse under section 6013, and every surviving spouse—</text><subparagraph id="HB82F577896F34E8D86DE75BC13C13858"><enum>(A)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 10 percent bracket is the product of 0.56 multiplied by the annualized stability wage for the taxable year,</text></subparagraph><subparagraph id="H32EE70362E83458C842AE87A438D9F66"><enum>(B)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 12 percent bracket is the product of 2.28 multiplied by the annualized stability wage for the taxable year,</text></subparagraph><subparagraph id="H86285E50C65A4D2784F805A67008C552" display-inline="no-display-inline"><enum>(C)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 22 percent bracket is the product of 4.8 multiplied by the annualized stability wage for the taxable year,</text></subparagraph><subparagraph id="H005D2C638DF041848755377A2A0D61DC"><enum>(D)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 24 percent bracket is the product of 9.2 multiplied by the annualized stability wage for the taxable year,</text></subparagraph><subparagraph id="H19D06091CF744F79AACFEEC7F9E6A71A" display-inline="no-display-inline"><enum>(E)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 32 percent bracket is the product of 11.6 multiplied by the annualized stability wage for the taxable year,</text></subparagraph><subparagraph id="H586910F91471448880C1D6B8A15FC74B" display-inline="no-display-inline"><enum>(F)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 35 percent bracket is the product of 17.6 multiplied by the annualized stability wage for the taxable year, and</text></subparagraph><subparagraph id="H694DDACF55584D5AB08BA92D1514C56E" display-inline="no-display-inline"><enum>(G)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 37 percent bracket is infinite.</text></subparagraph></paragraph><paragraph id="H93DC488F6C1947878B12BD8AD6C800C1"><enum>(2)</enum><header>Heads of households</header><text>In the case of every head of household—</text><subparagraph id="HC9E1F0CF10334B7591EAB2A2401FE518" display-inline="no-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 10 percent bracket is the product of 0.42 multiplied by the annualized stability wage for the taxable year,</text></subparagraph><subparagraph id="H95E3EB7C5E0944E1BEFA3C4008A466E8"><enum>(B)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 12 percent bracket is the product of 1.52 multiplied by the annualized stability wage for the taxable year,</text></subparagraph><subparagraph id="H6910D732B0AA410D857EC1707F354102" display-inline="no-display-inline"><enum>(C)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 22 percent bracket is the product of 2.4 multiplied by the annualized stability wage for the taxable year,</text></subparagraph><subparagraph id="H206EF30B124D4F78B3C7E2A054C76500"><enum>(D)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 24 percent bracket is the product of 4.6 multiplied by the annualized stability wage for the taxable year,</text></subparagraph><subparagraph id="H2F31F635054E49AEBEBD00127E98C16D" display-inline="no-display-inline"><enum>(E)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 32 percent bracket is the product of 5.8 multiplied by the annualized stability wage for the taxable year,</text></subparagraph><subparagraph id="HE8A271AD37904EBB9CFD12785C6FA739" display-inline="no-display-inline"><enum>(F)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 35 percent bracket is the product of 14.6 multiplied by the annualized stability wage for the taxable year, and</text></subparagraph><subparagraph id="H81BB331563854AAB9004E5D33339B586" display-inline="no-display-inline"><enum>(G)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 37 percent bracket is infinite.</text></subparagraph></paragraph><paragraph id="H30A8B1F061684A59A6C1193A983C5DBD"><enum>(3)</enum><header>Unmarried individuals (other than surviving spouses and heads of households)</header><text>In the case of every individual (other than a surviving spouse or a head of household) who is not a married individual (as defined in section 7703)—</text><subparagraph id="H840DE8C481BB448A92C897766347F3BF" display-inline="no-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 10 percent bracket is the product of 0.28 multiplied by the annualized stability wage for the taxable year,</text></subparagraph><subparagraph id="HA71613D676BB4BD19F948992D6EFA2AA"><enum>(B)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 12 percent bracket is the product of 1.14 multiplied by the annualized stability wage for the taxable year,</text></subparagraph><subparagraph id="H0F2836BDB5EE46C69EA001E92E457C50" display-inline="no-display-inline"><enum>(C)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 22 percent bracket is the product of 2.4 multiplied by the annualized stability wage for the taxable year,</text></subparagraph><subparagraph id="HFB4A422496494706A128D369D0620662"><enum>(D)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 24 percent bracket is the product of 4.6 multiplied by the annualized stability wage for the taxable year,</text></subparagraph><subparagraph id="HA47118919D364CED89628D33F14AD1A3" display-inline="no-display-inline"><enum>(E)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 32 percent bracket is the product of 5.8 multiplied by the annualized stability wage for the taxable year,</text></subparagraph><subparagraph id="H52CBF442773E4AECA26F870D819764C1" display-inline="no-display-inline"><enum>(F)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 35 percent bracket is the product of 14.6 multiplied by the annualized stability wage for the taxable year, and</text></subparagraph><subparagraph id="HC1567F7502F04344B18164B141493949" display-inline="no-display-inline"><enum>(G)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 37 percent bracket is infinite.</text></subparagraph></paragraph><paragraph id="HEC0F91C63E0947D6931826D972C0E345"><enum>(4)</enum><header>Married individuals filing separate returns</header><text>In the case of every married individual (as defined in section 7703) who does not make a single return jointly with the individual’s spouse under section 6013—</text><subparagraph id="H6413CC4F05D04ADB9909B8C2B25F2B3C" display-inline="no-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 10 percent bracket is the product of 0.28 multiplied by the annualized stability wage for the taxable year,</text></subparagraph><subparagraph id="HF6FA66EC448D40E599BCDA31D874645A"><enum>(B)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 12 percent bracket is the product of 1.14 multiplied by the annualized stability wage for the taxable year,</text></subparagraph><subparagraph id="H7D1F7C36A3684A81BA0432584F7533EF" display-inline="no-display-inline"><enum>(C)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 22 percent bracket is the product of 2.4 multiplied by the annualized stability wage for the taxable year,</text></subparagraph><subparagraph id="H5643D912DEB244AE9FC600A5C3F3D9B3"><enum>(D)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 24 percent bracket is the product of 4.6 multiplied by the annualized stability wage for the taxable year,</text></subparagraph><subparagraph id="H0B48DFFBC67543FB94F1038600D679DF" display-inline="no-display-inline"><enum>(E)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 32 percent bracket is the product of 5.8 multiplied by the annualized stability wage for the taxable year,</text></subparagraph><subparagraph id="HCA9BE5A2A79F448FB0A8CC2FE1565DD5" display-inline="no-display-inline"><enum>(F)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 35 percent bracket is the product of 8.8 multiplied by the annualized stability wage for the taxable year, and</text></subparagraph><subparagraph id="HDA730A5B8E3948D0928349F98E21B2BD" display-inline="no-display-inline"><enum>(G)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 37 percent bracket is infinite.</text></subparagraph></paragraph><paragraph id="H89273E4322EC48A195AB0389AA957014"><enum>(5)</enum><header>Estates and trusts</header><text display-inline="yes-display-inline">In the case of every estate and every trust for the taxable year—</text><subparagraph id="HC8C8CCABEC5D410DB288FA3EECDA63A9"><enum>(A)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 10 percent bracket is the product of 0.08 multiplied by the annualized stability wage for the taxable year,</text></subparagraph><subparagraph id="H93D701855FA74EBB82A1BA33C8E9A67F"><enum>(B)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 24 percent bracket is the product of 0.27 multiplied by the annualized stability wage for the taxable year,</text></subparagraph><subparagraph id="HB49F3C39E5EA43878A2D29F98B72398B" display-inline="no-display-inline"><enum>(C)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 35 percent bracket is the product of 0.37 multiplied by the annualized stability wage for the taxable year, and</text></subparagraph><subparagraph id="H2A463B0837D1476D9917D0E34BB3EF51"><enum>(D)</enum><text display-inline="yes-display-inline">the maximum bracket amount for the 37 percent bracket is infinite.</text></subparagraph></paragraph></subsection><subsection id="HA01690053B044801AB83203E9D7CF199"><enum>(d)</enum><header>Definitions</header><text>For purposes of this section—</text><paragraph id="HD7B9996823BB46769A4ABD1EF8A64C20"><enum>(1)</enum><header>Annualized stability wage</header><text>The term <quote>annualized stability wage</quote> means, with respect to any taxable year, the product of 2,080 multiplied by the stability wage (as defined in section 6 of the Fair Labor Standards Act of 1938) for the calendar year in which or with which such taxable year begins.</text></paragraph><paragraph id="HD002E2F2B187494EA3E8D4B962590EEC" commented="no"><enum>(2)</enum><header>Maximum tax amount</header><subparagraph id="H9154186CE7D2478083BC078D28136E40"><enum>(A)</enum><header>In general</header><text>The term <quote>maximum tax amount</quote> means, with respect to any tax bracket, the product of—</text><clause id="HD61C1D10284D414F8DE787C8CCF92C8C"><enum>(i)</enum><text>the percentage which constitutes such tax bracket, multiplied by</text></clause><clause id="H694CE92AD0D84A458D590986C9F64F88"><enum>(ii)</enum><text>the excess of—</text><subclause id="H2E69EC6650EF4C0594BB821CAC53D421"><enum>(I)</enum><text>the maximum bracket amount for such tax bracket, over</text></subclause><subclause id="H697BA1820F614B87B0B7EA2636A28B50"><enum>(II)</enum><text>the highest maximum bracket amount for the taxpayer’s filing status which is less than the maximum bracket amount referred to in subclause (I).</text></subclause></clause></subparagraph><subparagraph id="H08865B50477947E4AF72688EE43732AC"><enum>(B)</enum><header>Special rule for lowest tax bracket</header><text>For purposes of determining the maximum tax amount with respect to the lowest tax bracket for a taxpayer’s filing status, the amount specified in subparagraph (A)(ii)(II) shall be treated as being zero.</text></subparagraph></paragraph><paragraph id="H6F8D7B2CBCE24B84A3DB5541D20072AB"><enum>(3)</enum><header>Filing status</header><text>The term <quote>filing status</quote> means, with respect to any taxpayer, the status of such taxpayer as being described in paragraph (1), (2), (3), (4), or (5) of subsection (c).</text></paragraph><paragraph id="H51B1726F57B7484EB6E9D9C10A13E478"><enum>(4)</enum><header>Tax brackets</header><text>The term <quote>tax bracket</quote> means, with respect to the filing status of any taxpayer, each bracket for which a maximum bracket amount is determined for such filing status.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H921C76521A9849D5B8DBC0AE9A4F8DB3"><enum>(b)</enum><header>Conforming amendments</header><paragraph id="HA875475096724F4BB328A231227EDBF1"><enum>(1)</enum><text>Section 1(f) of such Code is amended by striking all that precedes paragraph (3) and inserting the following:</text><quoted-block style="OLC" id="HE8F663B67AC647A4B2A70C566A206D83" display-inline="no-display-inline"><subsection id="H53BAA4D3FF9444628940D9730F223347"><enum>(f)</enum><header>Publication of tax tables; retention of cost-of-Living adjustment for other provisions</header><paragraph id="H414AB6F4F1C54656BCC2D3CB2ED3326A"><enum>(1)</enum><header>Publication of tax tables</header><text display-inline="yes-display-inline">Not later than December 15 of 2024, and each subsequent calendar year, the Secretary shall publish tax tables which state the dollar amounts in effect under subsections (b) and (c) with respect to taxable years beginning in the succeeding calendar year.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="HF1768E938DAD43C0882760C4274589F0"><enum>(2)</enum><text>Section 1(f)(3) of such Code is amended by striking <quote>For purposes of this subsection</quote> and inserting <quote>For purposes of any provision of law which refers to this subsection</quote>.</text></paragraph><paragraph id="HE831584F11D94560A8CC0132B4A513A8"><enum>(3)</enum><text>Section 1(f) of such Code is amended by striking paragraphs (7) and (8) and inserting the following new paragraph:</text><quoted-block style="OLC" id="HABCE48F036A94D1B98A100B26E3A05ED" display-inline="no-display-inline"><subsection id="H790CAB84597A4E34BA52A0DB507CF9CB"><enum>(7)</enum><header>Rounding</header><text display-inline="yes-display-inline">If any increase determined under section 63(c)(4), section 68(b)(2), or section 151(d)(4) is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="HE7F685FCD7324EE3A9D605835124E3F6"><enum>(4)</enum><text>Section 1 of such Code is amended by striking subsections (i) and (j).</text></paragraph></subsection><subsection id="H959F566B6873455E8BDBDC11F7D3C0DE"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2024.</text></subsection></section><section display-inline="no-display-inline" id="H768A9468A4E54984BDEB3E658965673D" section-type="subsequent-section"><enum>2.</enum><header>Surcharge on high income individuals, estates, and trusts</header><subsection id="HF4F910F2CD7346B1942FF75084521D65"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Part I of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 is amended by inserting after section 1 the following new section:</text><quoted-block display-inline="no-display-inline" id="HB8B356E9566C47009BEC9ED9AC5BF7B2" style="OLC"><section id="H69D0F88232C2470A8F672EE183FF412B"><enum>1A.</enum><header>Surcharge on high income individuals, estates, and trusts</header><subsection id="H09F04697895C464F8ADA295A1BB12E6D"><enum>(a)</enum><header>General rule</header><text>In the case of a taxpayer other than a corporation, there is hereby imposed (in addition to any other tax imposed by this subtitle) a tax equal to the sum of—</text><paragraph id="H7DED4D5900054853883BD778A3D2C2F0"><enum>(1)</enum><text>3 percent of so much of the modified adjusted gross income of the taxpayer as exceeds—</text><subparagraph id="H049EAFBF081F4DD48DCF5195B645B0EC"><enum>(A)</enum><text>the product of 25 multiplied by the annualized stability wage for the taxable year, in the case of any taxpayer not described in subparagraph (B) or (C),</text></subparagraph><subparagraph id="HC43E38E9F5B34958969D4E16B6F4FB67"><enum>(B)</enum><text display-inline="yes-display-inline">the product of 12.5 multiplied by the annualized stability wage for the taxable year, in the case of a married individual filing a separate return, and</text></subparagraph><subparagraph id="HFE1401AF12F741979D6C4726163E8163"><enum>(C)</enum><text display-inline="yes-display-inline">the product of 4.8 multiplied by the annualized stability wage for the taxable year, in the case of an estate or trust, plus</text></subparagraph></paragraph><paragraph id="H2B4B1F0412B84F8A8DAB8AAFAAEB88EC"><enum>(2)</enum><text>5 percent of so much of the modified adjusted gross income of the taxpayer as exceeds—</text><subparagraph id="H5CB9527729434769B9DC820149ABBAD4"><enum>(A)</enum><text display-inline="yes-display-inline">the product of 365 multiplied by the annualized stability wage for the taxable year, in the case of any taxpayer not described in subparagraph (B) or (C),</text></subparagraph><subparagraph id="HC59BB25A0CC54C9A878A2CB80192E6A6"><enum>(B)</enum><text display-inline="yes-display-inline">the product of 182.5 multiplied by the annualized stability wage for the taxable year, in the case of a married individual filing a separate return, and</text></subparagraph><subparagraph id="HA32BD32D0EB1497298D897D36D72711F"><enum>(C)</enum><text display-inline="yes-display-inline">the product of 12 multiplied by the annualized stability wage for the taxable year, in the case of an estate or trust.</text></subparagraph></paragraph></subsection><subsection id="H63486E266F524E8D9F6565879FB3AB97"><enum>(b)</enum><header>Modified adjusted gross income</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>modified adjusted gross income</term> means adjusted gross income reduced by any deduction (not taken into account in determining adjusted gross income) allowed for investment interest (as defined in section 163(d)) or business interest (as defined in section 163(j)). In the case of an estate or trust, adjusted gross income shall be determined as provided in section 67(e), and reduced by the amount allowed as a deduction under section 642(c).</text></subsection><subsection id="H9637C08CD92848EF865AF58A49A671D4"><enum>(c)</enum><header>Annualized stability wage</header><text>For purposes of this section, the term <quote>annualized stability wage</quote> has the meaning given such term in section 1(d)(1).</text></subsection><subsection id="HC884761DC84549B7A32802C48F3CAAB1"><enum>(d)</enum><header>Special rules</header><paragraph id="H0400C90F42D745338B24412DF29C14A5"><enum>(1)</enum><header>Nonresident alien</header><text display-inline="yes-display-inline">In the case of a nonresident alien individual (other than an individual described in section 876(a) or 877(a)), only amounts taken into account in connection with the tax imposed under section 871(b) shall be taken into account under this section.</text></paragraph><paragraph id="H35284831EDB84B13A0E053A9A4B3B96D"><enum>(2)</enum><header>Citizens and residents living abroad</header><text>Each dollar amount which is applicable to any taxpayer under subsection (a) shall be decreased (but not below zero) by the excess (if any) of—</text><subparagraph id="H0B54FEAADBE64D2F86F0D07E5B527907"><enum>(A)</enum><text>the amounts excluded from the taxpayer’s gross income under section 911, over</text></subparagraph><subparagraph id="HBA675162596E436E8ACFABA20C223D48"><enum>(B)</enum><text display-inline="yes-display-inline">the amounts of any deductions or exclusions disallowed under section 911(d)(6) with respect to the amounts described in subparagraph (A). </text></subparagraph></paragraph><paragraph id="H11A057F573B44D7C872506DD41BF316B"><enum>(3)</enum><header>Charitable trusts</header><text display-inline="yes-display-inline">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).</text></paragraph><paragraph id="HFDFA2D6159604866B971707BCE7ED1FB" commented="no" display-inline="no-display-inline"><enum>(4)</enum><header>Not treated as tax imposed by this chapter for certain purposes</header><text display-inline="yes-display-inline">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 (other than sections 27 and 901) or for purposes of section 55.</text></paragraph><paragraph id="HA5D85FB2ECF741A2A20944A064F22D6D"><enum>(5)</enum><header>Electing small business trusts</header><text display-inline="yes-display-inline">For purposes of the determination of adjusted gross income, section 641(c)(1)(A) shall not apply and all portions of any electing small business trust shall be treated as a single trust.</text></paragraph></subsection><subsection id="HC0C903E19F2040F693C936313627AB89"><enum>(e)</enum><header>Regulations</header><text>The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance to prevent the avoidance of the purposes of this section.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HCA9CA345311C493E98AD8338AD7BAFE7"><enum>(b)</enum><header>Coordination with certain provisions</header><paragraph id="H76C5C85B4EA04B87A4FD86497ABA6DF7"><enum>(1)</enum><header>Interest on certain deferred tax liability</header><text>Section 453A(c) of such Code is amended by redesignating paragraph (6) as paragraph (7) and by inserting after paragraph (5) the following new paragraph:</text><quoted-block style="OLC" id="HC45437B0AD0448509D156DB467BC5B0A" display-inline="no-display-inline"><paragraph id="HD754F5B36240490AABD61E261FA2C03D"><enum>(6)</enum><header>Surcharge on high income individuals taken into account in determining maximum rate of tax</header><text display-inline="yes-display-inline">For purposes of paragraph (3)(B), the maximum rate of tax in effect under section 1 shall be treated as being equal to the sum of such rate and the rates in effect under paragraphs (1) and (2) of section 1A(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H502218C738634CE0B40B9F66646C3655"><enum>(2)</enum><header>Alien residents of Puerto Rico, Guam, American Samoa, or the Northern Mariana Islands</header><text display-inline="yes-display-inline">Section 876(a) of such Code is amended by striking section 1 and inserting <quote>sections 1 and 1A</quote>.</text></paragraph><paragraph id="H46D8FCEFD7F144AF9C675C998068EB97"><enum>(3)</enum><header>Expatriation to avoid tax</header><text display-inline="yes-display-inline">Section 877(b) of such Code is amended by inserting <quote>and section 1A</quote> after <quote>section 1 or 55</quote>.</text></paragraph><paragraph id="HB95F431510B4406AA681D0738646AC28"><enum>(4)</enum><header>Limitation on foreign tax credit</header><subparagraph id="HD4B1C9E61F3A42AFBCED65EBD2B9FBD7"><enum>(A)</enum><text display-inline="yes-display-inline">Section 904(b)(3)(E)(i)(I) of such Code is amended by inserting <quote>increased by the sum of the rates set forth in paragraphs (1) and (2) of section 1A(a)</quote> after <quote>(whichever applies)</quote>.</text></subparagraph><subparagraph id="HE78567BA37FE4C25BB6C03ABBDABC53E"><enum>(B)</enum><text display-inline="yes-display-inline">Section 904(d)(2)(F) of such Code is amended by adding at the end the following: <quote>For purposes of the first sentence of this subparagraph, the highest rate of tax specified in section 1 shall be treated as being equal to the sum of such rate and the rates in effect under paragraphs (1) and (2) of section 1A(a).</quote>.</text></subparagraph></paragraph><paragraph id="H166B64AD26BC4BF8B2FC2424432967C6"><enum>(5)</enum><header>Election by individuals to be subject to tax at corporate rates</header><text display-inline="yes-display-inline">Section 962(a)(1) of such Code is amended by inserting <quote>, 1A,</quote> after <quote>sections 1</quote>.</text></paragraph><paragraph id="H2B64A9D974C64166B648F8BCEB6D1FE6"><enum>(6)</enum><header>Interest on certain tax deferral</header><text display-inline="yes-display-inline">Section 1291(c)(2) of such Code is amended by adding at the end the following: <quote>For purposes of the preceding sentence, the highest rate of tax in effect under section 1 shall be treated as being equal to the sum of such rate and the rates in effect under paragraphs (1) and (2) of section 1A(a).</quote>.</text></paragraph><paragraph id="H5882774164AF41DFAE277F31555EFE5C"><enum>(7)</enum><header>Averaging of farm income</header><text display-inline="yes-display-inline">Section 1301(a) of such Code is amended by striking <quote>section 1</quote> both places it appears and inserting <quote>sections 1 and 1A</quote>.</text></paragraph><paragraph id="HA71624C8149D4892BFD2FFAA21342DBC"><enum>(8)</enum><header>Title 11 cases</header><text display-inline="yes-display-inline">Section 1398(c)(2) of such Code is amended by inserting <quote>and tax shall be imposed under section 1A by treating the estate as a married individual filing a separate return</quote> before the period at the end.</text></paragraph><paragraph id="H6EA0D060BF174B2CB14394EF317A9281"><enum>(9)</enum><header>Withholding of tax on foreign partners’ share of effectively connected income</header><text display-inline="yes-display-inline">Section 1446(b)(2) of such Code is amended by adding at the end the following flush sentence:</text><quoted-block style="OLC" id="HF156A7AB311A46B89754006F45EF2246" display-inline="no-display-inline"><quoted-block-continuation-text quoted-block-continuation-text-level="paragraph">For purposes of subparagraph (A), the highest rate of tax in effect under section 1 shall be treated as being equal to the sum of such rate and the rates in effect under paragraphs (1) and (2) of section 1A(a).</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H940FCD49B1AB4BA791C4AE0D67DD1CB2"><enum>(10)</enum><header>Relief from joint and several liability on joint return</header><text display-inline="yes-display-inline">Section 6015(d)(2)(B) of such Code is amended by inserting <quote>, 1A,</quote> after <quote>section 1</quote>.</text></paragraph><paragraph id="H34132A463EAA479F87929C2D68FAC2C6"><enum>(11)</enum><header>Partnership adjustments</header><subparagraph id="H79D36ED1030B4413883CBA0FD22C7E1F"><enum>(A)</enum><text display-inline="yes-display-inline">Section 6225(b)(1) of such Code is amended by adding at the end the following flush sentence:</text><quoted-block style="OLC" id="HB42219D533624C5FA2849173B47138E9" display-inline="no-display-inline"><quoted-block-continuation-text quoted-block-continuation-text-level="paragraph">For purposes of subparagraph (B), the highest rate of tax in effect under section 1 shall be treated as being equal to the sum of such rate and the rates in effect under paragraphs (1) and (2) of section 1A(a).</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph id="H261547B85A884453835CB4335F78976F"><enum>(B)</enum><text display-inline="yes-display-inline">Section 6225(c)(4)(A) of such Code is amended—</text><clause id="H4C79DD2ED21A47BFAFDB2AAE4C6EEA3B"><enum>(i)</enum><text>by striking <quote>subsection (b)(1)(A)</quote> and inserting <quote>subsection (b)(1)(B)</quote>, and</text></clause><clause id="H7E9268B18D234810834BC9CFE440BA16"><enum>(ii)</enum><text>by striking <quote>or</quote> at the end of clause (i), by adding <quote>or</quote> at the end of clause (ii), and by inserting after clause (ii) the following new clause:</text><quoted-block style="OLC" id="H6689372215FE49F6BCD6A1EA9DA6ABAF" display-inline="no-display-inline"><clause id="HE5310817981F4042BBCB2EC6241BCD32"><enum>(iii)</enum><text display-inline="yes-display-inline">is not an individual subject to one or both of the rates of tax in effect under paragraphs (1) and (2) of section 1A(a),</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph></paragraph><paragraph id="H329F7B23F3874BDBB461181CFC449C95"><enum>(12)</enum><header>Required payments for entities electing not to have required taxable year</header><text display-inline="yes-display-inline">Section 7519(b) of such Code is amended by inserting <quote>and increased by the sum of the rates in effect under paragraphs (1) and (2) of section 1A(a)</quote> before the period at the end.</text></paragraph></subsection><subsection id="H4383A7433AA248A0822234B70629678A"><enum>(c)</enum><header>Clerical amendment</header><text display-inline="yes-display-inline">The table of sections for part I of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 1 the following new item:</text><quoted-block style="OLC" id="H6954158522FB4278A32120115CB2F355" display-inline="no-display-inline"><toc container-level="quoted-block-container" quoted-block="no-quoted-block" lowest-level="section" idref="HB8B356E9566C47009BEC9ED9AC5BF7B2" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded"><toc-entry idref="H69D0F88232C2470A8F672EE183FF412B" level="section">Sec. 1A. Surcharge on high income individuals.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HF33F1A3B225A4E4682A79917C71C807B"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2024.</text></subsection></section><section id="H81D76298E6FF4D6992D53AC08E0D8C3B"><enum>3.</enum><header>Alternative maximum tax for low-income individuals</header><subsection id="HD2D39A33F6DA479E99831A6D7107D50D"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Part I of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986, as amended by section 202, is amended by inserting after section 1A the following new section:</text><quoted-block style="OLC" id="HF324F2C4033F48F9A903F735B540E1C0" display-inline="no-display-inline"><section id="HE0CA372D50FF44C0AC0F89CFACA12AF1"><enum>1B.</enum><header>Alternative maximum tax for low-income individuals</header><subsection id="HE47754D4F8F04D6B996FBF47F6429152"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of an qualified low-income individual, the tax imposed under section 1 for any taxable year shall not exceed 24.4 percent of the excess of—</text><paragraph id="H17529E03657048ACB0BF1CFD643BE708"><enum>(1)</enum><text>the taxpayer’s modified adjusted gross income for such taxable year, over</text></paragraph><paragraph id="HF1CECC28442545799A48918627031941"><enum>(2)</enum><text>the cost-of-living exemption for such taxable year.</text></paragraph></subsection><subsection id="H15180C0DFD6E4E729C862B002C9FAAA3"><enum>(b)</enum><header>Qualified low-Income individual</header><text>For purposes of this section, the term <quote>qualified low-income individual</quote> means, with respect to any taxable year, any individual (other than an estate or trust) if the taxpayers modified adjusted gross income for such taxable year is less than 200 percent of the cost-of-living exemption for such taxable year.</text></subsection><subsection id="H9A11C48C94414257A4D50ADF4C4CA3C6"><enum>(c)</enum><header>Cost-of-Living exemption</header><text>For purposes of this section—</text><paragraph id="H14C206827AAD4858AA7F893B6489F193"><enum>(1)</enum><header>In general</header><text>The term <quote>cost-of-living exemption</quote> means, with respect to any taxable year—</text><subparagraph id="H3EFAC4FCBFC0414DB03D016309EA2A68"><enum>(A)</enum><text>in the case of a taxpayer not described in subparagraph (B) or (C), 100 percent of annualized cost-of-living wage,</text></subparagraph><subparagraph id="H45F1E668C15342C3A789752D79565574"><enum>(B)</enum><text>in the case of a joint return, 200 percent of the annualized cost-of-living wage, and</text></subparagraph><subparagraph id="H949AA1463CF1436B87B2A2AB459D6520"><enum>(C)</enum><text>in the case of a head of household, 140 percent of the annualized cost-of-living wage.</text></subparagraph></paragraph><paragraph id="H0DAD5FBCB0134F09B6A8282CC8C43200" commented="no" display-inline="no-display-inline"><enum>(2)</enum><header>Annualized cost-of-living wage</header><text display-inline="yes-display-inline">The term <quote>annualized cost-of-living wage</quote> means, with respect to any taxable year, the product of 2,080 multiplied by the cost-of-living wage (as defined in section 6 of the Fair Labor Standards Act of 1938) for the calendar year in which or with which such taxable year begins.</text></paragraph></subsection><subsection id="HBE7DFDCDB1D949FB978C75328C123C52"><enum>(d)</enum><header>Modified adjusted gross income</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>modified adjusted gross income</quote> means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H14B2F11D24FD453AB57A6F19D5128703"><enum>(b)</enum><header>Clerical amendment</header><text display-inline="yes-display-inline">The table of sections for part I of subchapter A of chapter 1 of such Code, as amended by section 202, is amended by inserting after the item relating to section 1A the following new item:</text><quoted-block style="OLC" id="HA163F6478DD54B1B83A02BEDD9B3839C" display-inline="no-display-inline"><toc container-level="quoted-block-container" quoted-block="no-quoted-block" lowest-level="section" idref="HF324F2C4033F48F9A903F735B540E1C0" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded"><toc-entry idref="HE0CA372D50FF44C0AC0F89CFACA12AF1" level="section">Sec. 1B. Alternative maximum tax for low-income individuals.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H64856428CB0B4C33AFAD2F2D9C5A2F11"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2024.</text></subsection></section><enum>II</enum><header>Earned income disallowance</header><section id="HC10C3466BD064BD682A7D31E61075F3B"><enum>301.</enum><header>Earned income disallowance</header><subsection id="H14A7069C15A5486094E680774A6D3FD1"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law, for purposes of determining the eligibility of a specified individual for benefits or assistance (or the amount or extent of benefits or assistance) under any means-tested Federal program, or under any means-tested State or local program financed in whole or in part with Federal funds—</text><paragraph id="H570EF0F1DB1F40F3A0F8D4ACD1BEF102"><enum>(1)</enum><text display-inline="yes-display-inline">with respect to the 1-year period beginning on the effective date described in section 401, if the earned income of such individual for such 1-year period (determined without regard to this section) does not exceed the product of 2,080 multiplied by the cost-of-living wage (as defined in section 6 of the Fair Labor Standards Act of 1938) for the calendar year in which such 1-year period ends, the earned income of such individual shall not be treated as exceeding the earned income of such individual for the 1-year period ending on such effective date, and</text></paragraph><paragraph id="H826B2FC72EDD488791F596DA6B56D390"><enum>(2)</enum><text display-inline="yes-display-inline">with respect to the 1-year period beginning 1 year after such effective date, if the earned income of such individual for such 1-year period (determined without regard to this section) does not exceed the product of 2,080 multiplied by the cost-of-living wage (as defined in section 6 of the Fair Labor Standards Act of 1938) for the calendar year in which such 1-year period ends, the earned income of such individual shall not be treated as exceeding the sum of—</text><subparagraph id="H6AC9231E3C9340CE830D76D94C9E1CDA"><enum>(A)</enum><text>the earned income of such individual for the 1-year period ending on such effective date, plus</text></subparagraph><subparagraph id="HF65B50FA749043BB92FC748D80B1D03F"><enum>(B)</enum><text>50 percent of the excess (if any) of—</text><clause id="H96311DCC627E446CBE52F42FAF0C1027"><enum>(i)</enum><text>the earned income of such individual for the 1-year period beginning 1 year after such effective date, over</text></clause><clause id="HDD1BDD4FB53B428291428B9503F70ACF"><enum>(ii)</enum><text>the earned income of such individual for the 1-year period ending on such effective date.</text></clause></subparagraph></paragraph></subsection><subsection id="HD1E23AF7E1D441BDAF00C5AE15A30616"><enum>(b)</enum><header>Specified individual</header><text>For purposes of this section, the <quote>specified individual</quote> means any individual if the earned income of such individual for the 1-year period ending on the effective date described in section 410 exceeds zero.</text></subsection></section><enum>III</enum><header>Effective date</header><section id="HFA3357719ADE47128106B7CEE2BF4D81"><enum>401.</enum><header>Effective date</header><text display-inline="no-display-inline">Except as otherwise specified in this Act, this Act, and the amendments made by this Act, shall take effect on the 1st day of the 3rd month that begins after the date of enactment of this Act.</text></section>