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119-s-4083119th CongressWALLET
Working Americans’ Tax Cut Act
Sponsored By: Senator Van Hollen, Chris [D-MD]
Introduced
Summary
This bill would cap the regular income tax for many low- and middle-income taxpayers at 25.5% of income above a cost-of-living exemption. It would also add a new three-tier surtax on very high individual 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
This bill would add a new surtax on very high individual incomes. The surtax would be 5% on MAGI over $1,000,000 up to $2,000,000; 10% on MAGI over $2,000,000 up to $5,000,000; and 12% on MAGI over $5,000,000. For taxable years after 2026 those dollar thresholds would be inflation-adjusted using the BLS CPI‑U for September. For joint filers each threshold would be 50% higher after inflation. MAGI for the surtax is AGI reduced by any allowed investment interest deduction. Some trusts are exempt and special rules lower thresholds for citizens or residents living abroad. It would apply to tax years starting after December 31, 2025.
Cap on taxes for lower earners
This bill would create a new cap on regular income tax for certain lower- and middle-income taxpayers. It would limit your tax to at most 25.5% of the amount your modified adjusted gross income (MAGI) is above a cost-of-living exemption. You would be a qualified individual if your MAGI is less than 175% of that exemption (some people described in section 63(c)(6) are excluded). The exemption is based on a $46,000 annual wage adjusted by the BLS CPI‑U for September and multiplied by filing status: 100% for most taxpayers, 200% for joint returns, and 140% for heads of household. MAGI for this rule adds back certain excluded foreign income and the portion of Social Security benefits not taxed under section 86. It would apply to tax years starting after December 31, 2025.
Sponsors & CoSponsors
Sponsor
Van Hollen, Chris [D-MD]
MD • D
Cosponsors
Sen. Kelly, Mark [D-AZ]
AZ • D
Sponsored 3/12/2026
Sen. Gillibrand, Kirsten E. [D-NY]
NY • D
Sponsored 3/12/2026
Sen. Booker, Cory A. [D-NJ]
NJ • D
Sponsored 3/12/2026
Sen. Kim, Andy [D-NJ]
NJ • D
Sponsored 3/12/2026
Sen. Durbin, Richard J. [D-IL]
IL • D
Sponsored 3/12/2026
Sen. Sanders, Bernard [I-VT]
VT • I
Sponsored 3/12/2026
Sen. Merkley, Jeff [D-OR]
OR • D
Sponsored 3/12/2026
Sen. Coons, Christopher A. [D-DE]
DE • D
Sponsored 3/12/2026
Sen. Blumenthal, Richard [D-CT]
CT • D
Sponsored 3/12/2026
Sen. Schatz, Brian [D-HI]
HI • D
Sponsored 3/12/2026
Sen. Baldwin, Tammy [D-WI]
WI • D
Sponsored 3/12/2026
Sen. Hirono, Mazie K. [D-HI]
HI • D
Sponsored 3/12/2026
Sen. Heinrich, Martin [D-NM]
NM • D
Sponsored 3/12/2026
Sen. King, Angus S., Jr. [I-ME]
ME • I
Sponsored 3/12/2026
Sen. Markey, Edward J. [D-MA]
MA • D
Sponsored 3/12/2026
Sen. Welch, Peter [D-VT]
VT • D
Sponsored 3/12/2026
Sen. Schiff, Adam B. [D-CA]
CA • D
Sponsored 3/12/2026
Sen. Blunt Rochester, Lisa [D-DE]
DE • D
Sponsored 3/12/2026
Sen. Gallego, Ruben [D-AZ]
AZ • D
Sponsored 3/19/2026
Sen. Hickenlooper, John W. [D-CO]
CO • D
Sponsored 4/30/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov