Sen. Van Hollen Introduces Working Americans’ Tax Cut Act to Slash Taxes for Workers and Tax Millionaires
Small business owners face a split impact. Those with modest pass-through income under the qualification threshold would see tax relief from the cost-of-living exemption. However, higher-earning small business owners with income above $1 million would face the new surcharge — potentially 5% to 12% additional tax on their individual returns, since the surcharge applies to non-corporate taxpayers.
“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 to the sum of--”
Read twice and referred to the Committee on Finance.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
No votes have been recorded for this legislation yet.
The Working Americans' Tax Cut Act would eliminate federal income taxes for those earning under $46,000 and reduce them for earners up to $80,500. To fund the relief, the bill introduces a tiered surtax on millionaires, starting at 5% for income over $1 million and rising to 12% over $5 million.
Rep. Don Beyer (D-VA) introduced the House companion to the Working Americans' Tax Cut Act. The bill creates a tiered surtax on income above $1 million to fund tax relief for lower- and middle-income Americans, including a full exemption for those earning less than the median cost of living.
During a 'Squawk Box' segment, CNBC's Becky Quick questioned Sen. Chris Van Hollen on his Working Americans' Tax Cut Act, noting it would nearly double the number of Americans who pay no federal income tax. Critics argue the plan could disincentivize work and fails to address the root of inflation.
Document Type
Congressional Bill
Official Title
Working Americans’ Tax Cut Act
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