Democrats propose tax cut bill targeting working families

Bicameral group says ‘Working Americans’ Tax Cut Act’ would guarantee permanent tax relief to the middle class

WASHINGTON (Gray DC) - A bicameral group of Democrats has introduced legislation they say would provide permanent tax relief to millions of working families, funded by a new surtax on income above $1 million.

The “Working Americans’ Tax Cut Act” would guarantee that someone making $50,000 a year keeps an additional $2,800 of their paycheck. Lawmakers say the goal is to ensure families have funds for basic necessities without raising the national debt.

Sen. Mark Kelly (D-AZ) said the legislation is aimed at working families hit hard by the rising cost of rent, utilities, groceries, and more.

“Way too many families across the country, they’re doing everything right and they still can’t get ahead,” Kelly said.

Sen. Chris Van Hollen (D-MD) framed the proposal around the relationship between wages and taxation.

“If your paycheck amounts to a living wage, you should be able to live off of it and not have it taxed away,” Van Hollen said.

The tax cuts would be funded by a new surtax on income above $1 million, targeting the country’s highest earners. Rep. Don Beyer (D-VA-08) said the measure is about fairness.

“The wealthiest should pay their fair share of taxes and... life should be more affordable for billions of Americans,” Beyer said.

The proposal comes as Democrats highlight affordability ahead of the midterms. It also draws a contrast with the One Big Beautiful Bill Act — President Trump’s 2025 tax cut proposal which introduced new temporary deductions and made permanent tax changes from 2017.

The Tax Foundation found the Act would temporarily reduce federal taxes for most Americans, a figure that includes the country’s highest earners.

President Trump has continued to tout the legislation’s impact.

“Everything that you see in this country that’s being built, you get what’s called expensing, meaning a deduction in the first year,” Trump said.

Democrats say the benefits of the Republican plan disproportionately favor the wealthy at the expense of the middle class.

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