Section 1 Short title
This Act may be cited as the “Alternative Maximum Tax Act” or the “Max Tax Act”.
Alternative Maximum Tax Act
A BILL
To amend the Internal Revenue Code of 1986 to establish a maximum rate of Federal, State, and local tax imposed on taxpayers.
Sec. 2 Maximum tax imposed
In general— Part I of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 3 the following new section:
“4. Maximum tax imposed
“(a) In general—Notwithstanding any other provision of this subtitle, the tax imposed under this chapter on a taxpayer other than a corporation for the taxable year shall not exceed the amount which when, added to the tax amounts described in subsection (b), bears the same ratio as 50 percent of adjusted gross income of the taxpayer for the taxable year bears to the adjusted gross income of the taxpayer for the taxable year.
“(b) Tax amounts described—For purposes this section, the tax amounts described in this subsection are the amounts of tax paid for any period (or allocable portion thereof) in the taxable year under any of the following Federal, State, or local taxes:
“(1) Air transportation taxes.
“(2) Biodiesel fuel taxes.
“(3) Cigarette taxes.
“(4) Medicare tax.
“(5) Social Security tax.
“(6) Estate taxes.
“(7) Insurance taxes, including insurance premium taxes, excise taxes on comprehensive health insurance plans, and individual health insurance mandate taxes.
“(8) Federal unemployment taxes.
“(9) Garbage taxes.
“(10) Gasoline taxes.
“(11) Gift taxes.
“(12) Hotel taxes.
“(13) Import taxes.
“(14) Income tax, including city, State, and county.
“(15) Inheritance taxes.
“(16) Interstate user diesel fuel taxes.
“(17) Inventory taxes.
“(18) Liquor taxes.
“(19) Luxury taxes.
“(20) Medicare taxes.
“(21) Taxes enacted under the Patient Protection and Affordable Care Act, including the individual mandate excise tax and the Medicare tax surcharge on investment income of high earning Americans.
“(22) Tangible personal property taxes.
“(23) Real estate taxes.
“(24) Sales taxes.
“(25) Self-employment taxes.
“(26) Service charge taxes.
“(27) Sewer and water taxes.
“(28) Special assessments (city and county).
“(29) State unemployment taxes (SUTA).
“(30) Tanning taxes.
“(31) Telephone-related taxes, including telephone 911 service taxes, telephone Federal excise taxes, telephone Federal universal service fee taxes, telephone minimum usage surcharge taxes, telephone State and local taxes, telephone universal access taxes.
“(32) Tire taxes.
“(33) Use taxes (city, county, and State).
“(34) Utility taxes.
“(35) Vehicle registration taxes.
“(36) Waste management taxes.
“(37) Workers compensation taxes.
“(c) Regulations—The Secretary shall prescribe such regulations as may be necessary to carry out this section.”
Clerical amendment— The table of sections for part I of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 3 the following new item:
Effective date— The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.