WASHINGTON – On Tax Day, Senator Ruben Gallego (D-AZ) is highlighting his support of the Millionaires Surtax Act and the Stop Corporations and High Earners from Avoiding Taxes and Enforce the Rules Strictly (Stop CHEATERS) Act, bills to ensure the ultra-wealthy pay their fair share in taxes.  

“Across the country, middle- and working-class Americans have paid their fair share in taxes. Millionaires and billionaires, on the other hand, have not,” said Senator Gallego. “Our tax code is broken, and, thanks to Republicans’ tax law, it’s only gotten worse. Not only did they give tax breaks to billionaires, they also made it easier for them to get away with cheating on the taxes they do owe. I’m fighting for a tax code that works for working people, and the bills I’m backing today get us closer to that goal.”  

The Millionaires Surtax Act would apply an additional 10 percent tax to the nation’s wealthiest earners to address the growing income inequality gap between wealthy and working Americans and raise significant revenue to support everyday families and grow our economy. The nonpartisan Yale Budget Lab estimates that this proposal would raise $1.5 trillion over the next 10 years.

Specifically, the bill would:

  • Apply an additional 10 percent surtax to incomes above $2 million for married couples or above $1 million of individuals – applying equally to wages and salaries as well as to capital gains and other investment income.
  • Apply equally to wages and salaries as well as to capital gains and other realized investment income.

Read the full bill HERE.

The Stop CHEATERS Act would provide the Internal Revenue Service with $83 billion in mandatory funding through Fiscal Year 2031 to modernize taxpayer services and ensure the wealthy pay what they owe in taxes. This additional funding would reverse the rescissions to IRS funding provided by the Inflation Reduction Act (IRA) and compensate for discretionary spending cuts to the IRS budget.

The bill is expected to pay for itself several times over, given the extent of tax evasion among high earners and the positive impact of improved services to help lower- and middle-income taxpayers file their taxes. Yale Budget Lab has scored this bill as raising about $998 billion in net revenue over a ten-year window. For every dollar invested by this bill, the federal government will gain approximately $13 dollars in gross revenue.

Specifically, the bill would:

  • Restore and revitalize the IRS and ensure it is properly funded by providing over $83 billion in mandatory funding through Fiscal Year 2031, reversing both the rescissions to IRA funding and discretionary spending cuts to the IRS budget. This funding would be divided into four spending buckets and provide:
    • $45.6 billion for Enforcement to audit wealthy taxpayers and large corporations, pursue criminal investigations, and prevent financial crimes. The bill establishes a ramp-up period, increasing funding each year, allowing the IRS to gradually rebuild enforcement operations.
    • $25.4 billion for Technology and Operations Support to overhaul outdated technology and increase the agency’s capacity to detect fraud and noncompliance.
    • $3.1 billion for Business Systems Modernization to improve, operate, and maintain internal systems.
    • $9.6 billion for Taxpayer Services to allow for pre-filing assistance and education, taxpayer advocacy services, and other forms of free taxpayer assistance.
  • Instruct the IRS Commissioner to issue a report to Congress on the agency’s plan to shift auditing and enforcement resources to high-income individuals and large corporations, a directive first launched under Commissioner Werfel in 2024. In addition, the plan must include efforts to recruit and retain skilled auditors for high-income individuals and large corporations that typically have complicated tax situations. The Office of the Treasury Inspector General for Tax Administration would be required to issue a report on the effectiveness of this plan.

Read the full bill HERE.