Income-Splitting Tax Act

Income-Splitting Tax Act - Extends to all unmarried individuals the full tax benefits of income splitting now enjoyed by married individuals filing joint returns. Provides that, except in the case of a married individual filing a separate return, a nonresident alien individual, or an estate or trust, the tax imposed by section of the Internal Revenue Code upon the taxable income of any individual shall be twice the tax which would be imposed if the taxable income were cut in half. Provides that the determination of whether an individual is married shall be made as of the close of his taxable year, and an individual legally separated from his spouse under a decree of divorce or separate maintenance shall not be considered as married. (Amends 26 U.S.C. 2)

Provides for a tax surcharge limitation. Provides that the Secretary of the Treasury or his delegate shall prescribe and publish tables reflecting such amendments which shall apply, in lieu of the tables set forth in the Internal Revenue Code (relating to percentage method of withholding) (26 U.S.C. 3402(a)), with respect to wages paid on or after the first day of the first month which begins more than 20 days after the date of the enactment of this Act.