Maine Owl

Needless to say, the Sanders Amendment did not become part of the bailout package that passed the Senate last night. Nevertheless, I am posting its text below. If there was a single iota of thought (beyond Bernie & ilk) within our political class that this would be the just, right, and moral thing to do, I'd be much more likely to believe any of 'em have the public interest in mind.

Text of the Sanders Amendment follows:
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Purpose: To amend the Internal Revenue Code of 1986 to increase the tax on high income individuals.

IN THE SENATE OF THE UNITED STATES?110th Cong., 2d Sess. H. R. 3997 AMENDMENT intended to be proposed by ... Viz:

At the end add the following:
SEC. 304. SURTAX ON HIGH INCOME EARNERS.
(a) IN GENERAL.?Part I of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 1 the following new section:

1 SEC. 1A. INCREASE IN TAX ON HIGH INCOME INDIVIDUALS.
(a) GENERAL RULE.?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 6 to 10 percent of so much of modified adjusted gross income as exceeds $500,000 ($1,000,000 in the case of a joint return or a surviving spouse (as defined in section 9 2(a)).

(b) MODIFIED ADJUSTED GROSS INCOME.?For purposes of this section, the term modified adjusted gross income means adjusted gross income reduced by any deduction allowed for investment interest (as defined in section 163(d)). In the case of an estate or trust, a rule similar to the rule of section 67(e) shall apply for purposes of determining adjusted gross income for purposes of this section.

(c) NONRESIDENT ALIEN.?In the case of a nonresident alien individual, only amounts taken into account in connection with the tax imposed by section 871(b) shall be taken into account under this section.

(d) MARITAL STATUS.?For purposes of this section, marital status shall be determined under section 7703.

(e) 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 55.

(f) TERMINATION.?This section shall not apply to taxable years beginning after the date which is 5 years after the date of the enactment of this section.

(b) 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 1 the following new item:

??Sec. 1A. Increase in tax on high income individuals.??.

(c) EFFECTIVE DATE.?The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

(d) SECTION 15 NOT TO APPLY.?The amendment made by subsection (a) shall not be treated as a change in a rate of tax for purposes of section 15 of the Internal Revenue Code of 1986.