,,ii #aaith ,,congress #b;d ,session ,s4 #djhc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #ab1 #bjbf,mr4 ,van ,hollen 7for himself1 ,mr4 ,kelly1 ,mrs4 ,gillibrand1 ,mr4 ,booker1 ,mr4 ,kim1 ,mr4 ,durbin1 ,mr4 ,sanders1 ,mr4 ,merkley1 ,mr4 ,coons1 ,mr4 ,blumenthal1 ,mr4 ,schatz1 ,ms4 ,baldwin1 ,ms4 ,hirono1 ,mr4 ,heinrich1 ,mr4 ,king1 ,mr4 ,markey1 ,mr4 ,welch1 ,mr4 ,schiff1 and ,ms4 ,blunt ,rochester7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to make certain modifications in relation to the taxation of income required to fund basic living expenses1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,working ,americans' ,tax ,cut ,act4 #b4 ,alternative maximum tax for low-income individuals 7a7 ,in general ,part ,i of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #a the following new section3 #a;,a4 ,alternative maximum tax for low- and middle-income individuals 7a7 ,in general ,in the case of a qualified individual1 the tax imposed under section #a for any taxable year shall not exceed #be4e percent of the excess of-- 7#a7 the taxpayer's modified adjusted gross income for such taxable year1 over 7#b7 the cost-of-living exemption for such taxable year4 7b7 ,qualified individual 7#a7 ,in general ,for purposes of this section1 the term qualified individual means1 with respect to any taxable year1 any individual if the taxpayer's modified adjusted gross income for such taxable year is less than #age percent of the cost-of-living exemption for such taxable year4 7#b7 ,exception ,the term qualified individual shall not include any person described in section #fc7;c77#f74 7c7 ,cost-of-,living exemption ,for purposes of this section-- 7#a7 ,in general ,the term cost-of-living exemption means1 with respect to any taxable year-- 7,a7 in the case of a taxpayer not described in subparagraph 7,b7 or 7,c71 #ajj percent of the annualized cost-of-living wage1 7,b7 in the case of a joint return1 #bjj percent of the annualized cost-of-living wage1 and 7,c7 in the case of a head of household1 #adj percent of the annualized cost-of-living wage4 7#b7 ,annualized cost of living wage 7,a7 ,in general ,the term annualized cost-of-living wage means1 with respect to any taxable year1 an amount equal to #df1jjj1 multiplied by the ratio of-- 7i7 the ,,cpi-,u for the calendar year preceding the calendar year in which such taxable year begins1 to 7ii7 the ,,cpi-,u for the calendar year preceding the calendar year of the date of enactment of the ,working ,americans' ,tax ,cut ,act4 7,b7 ,,cpi-,u ,for purposes of this paragraph1 the term ,,cpi-,u means1 when used with respect to a calendar year1 the ,consumer ,price ,index for all urban consumers1 as published by the ,bureau of ,labor ,statistics1 for ,september of such year4 7d7 ,modified adjusted gross income ,for purposes of this section1 the term modified adjusted gross income means adjusted gross income increased by-- 7#a7 any amount excluded from gross income under section #iaa1 #ica1 or #icc1 and 7#b7 an amount equal to the portion of the taxpayer's social security benefits 7as defined in section #hf7;d77 which is not included in gross income under section #hf for the taxable year4 4 7b7 ,clerical amendment ,the table of sections for part ,i of subchapter ,a of chapter #a of such ,code is amended by inserting after the item relating to section #a the following new item3 ,sec4 #a;,a4 ,alternative maximum tax for low- and middle-income individuals4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjbe4 #c4 ,surcharge on high income individuals 7a7 ,in general ,subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new part3 ,,viii ,surcharge on high income individuals ,sec4 #ei;,b4 ,surcharge on high income individuals4 #ei;,b4 ,surcharge on high income individuals 7a7 ,general rule ,in the case of a taxpayer other than a corporation1 there is hereby imposed 7in addition to any other tax imposed by this subtitle7 a tax equal to the sum of-- 7#a7 #e percent of so much of the modified adjusted gross income of the taxpayer as exceeds #a1jjj1jjj1 but does not exceed #b1jjj1jjj1 7#b7 #aj percent of so much of the modified adjusted gross income of the taxpayer as exceeds #b1jjj1jjj1 but does not exceed #e1jjj1jjj1 plus 7#c7 #ab percent of so much of the modified adjusted gross income of the taxpayer as exceeds #e1jjj1jjj4 7b7 ,inflation adjustment 7#a7 ,in general ,in the case of any taxable year beginning after #bjbf1 subsection 7a7 shall be applied by substituting each dollar amount in such subsection with an amount equal to the product of-- 7,a7 such dollar amount 7as determined without regard to this subsection71 multiplied by 7,b7 an amount equal to the ratio of-- 7i7 the ,,cpi-,u for the calendar year preceding the calendar year in which such taxable year begins1 to 7ii7 the ,,cpi-,u for the calendar year preceding the calendar year of the date of enactment of the ,working ,americans' ,tax ,cut ,act4 7#b7 ,,cpi-,u ,for purposes of this subsection1 the term ,,cpi-,u means1 when used with respect to a calendar year1 the ,consumer ,price ,index for all urban consumers1 as published by the ,bureau of ,labor ,statistics1 for ,september of such year4 7c7 ,taxpayers making a joint return ,in the case of any taxpayer filing a joint return under section #fjac1 subsection 7a7 shall be applied 7after the application of subsection 7b77 by increasing each of the dollar amounts by an amount equal to #ej percent of such dollar amount4 7d7 ,modified adjusted gross income ,for purposes of this section1 the term modified adjusted gross income means adjusted gross income reduced by any deduction 7not taken into account in determining adjusted gross income7 allowed for investment interest 7as defined in section #afc7;d774 ,in the case of an estate or trust1 adjusted gross income shall be determined as provided in section #fg7;e74 7e7 ,special rules 7#a7 ,citizens and residents living abroad ,the dollar amount in effect under subsection 7a7 7after the application of subsections 7b7 and 7c77 shall be decreased by the excess of-- 7,a7 the amounts excluded from the taxpayer's gross income under section #iaa1 over 7,b7 the amounts of any deductions or exclusions disallowed under section #iaa7;d77#f7 with respect to the amounts described in subparagraph 7,a74 7#b7 ,charitable trusts ,subsection 7a7 shall not apply to a trust all the unexpired interests in which are devoted to one or more of the purposes described in section #agj7;c77#b77;,b74 7#c7 ,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 #ee4 4 7b7 ,clerical amendment ,the table of parts for subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,part ,,viii--,surcharge on high income individuals 4 7c7 ,section #ae not ,to apply ,the amendment made by subsection 7a7 shall not be treated as a change in a rate of tax for purposes of section #ae of the ,internal ,revenue ,code of #aihf4 7d7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjbe4