Working Americans’ Tax Cut Act

This bill would change federal income tax rules starting with tax years that begin after December 31, 2025. For people whose income is below 175 percent of a "cost-of-living exemption," their federal income tax could not be more than 25.5 percent of their income above that exemption. The exemption is based on a yearly amount of $46,000, adjusted for inflation, and is set at 200 percent of that amount for joint returns and 140 percent for heads of household. The bill would also add a new tax on individuals, estates, and trusts with income over $1 million: 5 percent on income from $1 million to $2 million, 10 percent from $2 million to $5 million, and 12 percent above $5 million, with higher thresholds for joint filers and yearly inflation adjustments.

Full text and official record on Congress.gov

Sponsors

• Chris Van Hollen Democrat sponsor
• 20 cosponsors