HR7937119th CongressWALLET

Working Americans’ Tax Cut Act

Sponsored By: Representative Beyer

Introduced

Summary

Caps tax payable for many low- and middle-income taxpayers at 25.5% of income above a cost-of-living exemption. This bill would create a new alternative maximum tax for qualifying individuals and add a separate tiered surcharge on very high incomes.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

New surtax on very high incomes

If enacted, this bill would add an extra surtax on non‑corporate taxpayers based on modified AGI (MAGI). You would pay 5% on MAGI between $1,000,000 and $2,000,000; 10% on MAGI between $2,000,000 and $5,000,000; and 12% on MAGI above $5,000,000. For taxable years after 2026 the dollar thresholds would be adjusted for inflation, and joint filers would use thresholds 50% larger after that adjustment. For this surtax MAGI means AGI reduced by any investment interest deduction under section 163(d). Certain charitable trusts are excluded. This would apply to tax years beginning after December 31, 2025.

Tax cap for lower‑ and middle‑income

If enacted, this bill would cap your income tax at 25.5% of the amount your modified adjusted gross income (MAGI) is above a cost-of-living exemption. The exemption starts from $46,000 multiplied by a CPI‑U ratio and is 100% for single filers, 200% for joint filers, and 140% for heads of household. You would qualify only if your MAGI is less than 175% of that exemption and you are not described in section 63(c)(6). For this rule MAGI adds back certain foreign-income exclusions and the non-taxed portion of Social Security. This would apply to tax years beginning after December 31, 2025.

Sponsors & CoSponsors

Sponsor

Beyer

VA • D

Cosponsors

  • Davis (IL)

    IL • D

    Sponsored 3/16/2026

  • Larson (CT)

    CT • D

    Sponsored 3/16/2026

  • McBride

    DE • D

    Sponsored 3/16/2026

  • Thanedar

    MI • D

    Sponsored 3/16/2026

  • Randall

    WA • D

    Sponsored 3/16/2026

  • Deluzio

    PA • D

    Sponsored 3/16/2026

  • Mannion

    NY • D

    Sponsored 3/26/2026

Roll Call Votes

No roll call votes available for this bill.

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