The Working Americans’ Tax Cut Act modifies the Internal Revenue Code to introduce an alternative maximum tax for low- and middle-income individuals.

The Working Americans’ Tax Cut Act amends the Internal Revenue Code to establish an alternative maximum tax for low- and middle-income individuals. This tax is set at 25.5 percent of the excess of the taxpayer's modified adjusted gross income over the cost-of-living exemption for the taxable year. The cost-of-living exemption varies based on the filing status, with different percentages of the annualized cost-of-living wage applied. Additionally, the Act imposes a surcharge on high income individuals, taxing 12 percent of the modified adjusted gross income exceeding $5,000,000.

The Working Americans’ Tax Cut Act modifies the Internal Revenue Code to introduce an alternative maximum tax for low- and middle-income individuals.

The Working Americans’ Tax Cut Act amends the Internal Revenue Code to establish an alternative maximum tax for low- and middle-income individuals. This tax is set at 25.5 percent of the excess of the taxpayer's modified adjusted gross income over the cost-of-living exemption for the taxable year. The cost-of-living exemption varies based on the filing status, with different percentages of the annualized cost-of-living wage applied. Additionally, the Act imposes a surcharge on high income individuals, taxing 12 percent of the modified adjusted gross income exceeding $5,000,000.