Working Americans’ Tax Cut Act
Sponsored By: Representative Beyer, Donald S. [D-VA-8]
Introduced
Summary
This bill would create a new Alternative Minimum Tax that caps tax rates for many low- and middle-income taxpayers. It would limit a qualified taxpayer's regular income tax to 25.5% on the amount their modified adjusted gross income exceeds a cost‑of‑living exemption.
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- Joint filers, heads of household, and single filers are treated differently for the exemption. Joint filers get 200% of the annualized cost-of-living wage, heads of household get 140%, and single filers get 100% of that wage, which is based on a $46,000 annualized figure adjusted by the CPI-U.
- A taxpayer would qualify for this low- and middle-income AMT only if their modified adjusted gross income is less than 175% of the cost-of-living exemption. The AMT rate is 25.5% of the excess above the exemption and the rule would apply to tax years beginning after December 31, 2025.
- For this AMT, modified adjusted gross income adds back amounts excluded under sections 911, 931, and 933 for foreign-earned income and the portion of Social Security benefits not included in gross income under section 86. This can raise the income measured for the cap and change who qualifies.
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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 impose a new annual surtax on noncorporate taxpayers for taxable years beginning after December 31, 2025. You would pay 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 above $5,000,000. For taxable years after 2026, each dollar threshold would be indexed for inflation using the CPI‑U ratio in the bill, and joint filers would get thresholds 50% higher after indexing. MAGI for this surtax generally means AGI reduced by any investment interest deduction not taken into account in AGI; estates and trusts follow special AGI rules. Some citizens living abroad face reduced applicable amounts, certain charitable trusts are exempt, and the surtax would not be treated as a chapter tax for computing other credits.
Tax cap for low- and middle-income
If enacted, this bill would create a new alternative maximum tax for certain low- and middle-income individuals for taxable years beginning after December 31, 2025. For a "qualified individual," your tax would be capped at 25.5% of the amount by which your modified adjusted gross income (MAGI) exceeds a filing-status cost-of-living exemption. You would be a qualified individual only if your MAGI is less than 175% of that exemption and you are not a person described in section 63(c)(6). The exemption equals 100% of an annualized cost-of-living wage for most filers, 200% for joint filers, and 140% for heads of household. The annualized cost-of-living wage is $46,000 multiplied by a CPI‑U ratio using the September CPI‑U values. For this AMT, MAGI means AGI increased by amounts excluded under sections 911, 931, or 933 and by the portion of Social Security benefits not included in income under section 86.
Sponsors & CoSponsors
Sponsor
Beyer, Donald S. [D-VA-8]
VA • D
Cosponsors
Davis (IL)
IL • D
Sponsored 3/16/2026
Rep. Larson, John B. [D-CT-1]
CT • D
Sponsored 3/16/2026
McBride
DE • D
Sponsored 3/16/2026
Rep. Thanedar, Shri [D-MI-13]
MI • D
Sponsored 3/16/2026
Randall
WA • D
Sponsored 3/16/2026
Rep. Deluzio, Christopher R. [D-PA-17]
PA • D
Sponsored 3/16/2026
Mannion
NY • D
Sponsored 3/26/2026
Rep. Dexter, Maxine [D-OR-3]
OR • D
Sponsored 4/14/2026
Rep. Foster, Bill [D-IL-11]
IL • D
Sponsored 4/14/2026
Rep. Vasquez, Gabe [D-NM-2]
NM • D
Sponsored 5/12/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov