WASHINGTON, D.C.— Sen. Chris Van Hollen (D-Md.) announced a proposed tax act Thursday that would provide broad and permanent income tax cuts to 130 million Americans – if it ever comes to pass.
The Working Americans’ Tax Cut Act would mean any individuals who earn less than the estimated median of $46,000 a year would not have to pay any federal income taxes.
“Far too many Americans are working hard for their paychecks but still having trouble making ends meet. These Americans who are earning just enough to get by – to meet their basic living expenses – should not have to pay a federal income tax,” Van Hollen said in a news conference.
The bill, cosponsored by Sen. Bernie Sanders, an Independent from Vermont, proposes to reduce federal income taxes based on familial income.
“Our bill would ensure just that – and it would provide a significant tax break to millions of other working Americans, so folks can keep more of their hard-earned money in their pockets,” Van Hollen said.
Randi Weingarten, president of the American Federation of Teachers (AFT), stood next to Van Hollen in support of his proposal.
Weingarten said this bill is AFT’s top priority.
“Right now, there’s a real crisis in terms of not having enough money in our pockets,” Weingarten said. “So let’s actually do what the tax code is supposed to do, which is to prefer the people who are the engine of the economy.”
Maryland GOP Chairwoman Nicole Beus Harris expressed her confusion about Van Hollen’s proposal in a statement to CNS Thursday afternoon.
“Sen. Van Hollen and every other member of the Maryland Democrat delegation voted against the largest working tax cut last year,” the statement read. “Is he now regretting his decision to vote to raise taxes on hardworking American taxpayers last year?”
To make up for lost tax revenue, the act would raise tiered taxes on millionaires, including an additional 5% tax for anyone who makes over $1 million annually.
Alice Goldberg, a self-employed resident of Baltimore County, wore a handmade, red “TAX THE RICH” shirt to Van Hollen’s press briefing.
“I’m a self-employed person making a median income as a piano and voice teacher,” Goldberg told Capital News Service. “It’s infuriating to me that I’m paying a higher level in taxes proportionally than people like Jeff Bezos.”
Goldberg also brought a muppet-inspired hand puppet named Gill O’Viley, who interviews politicians under the social media handle @trashpoliticsnews. The puppet “spoke” with Morris Pearl, board of directors chair for Patriotic Millionaires, one of the present supporters of Van Hollen’s bill.
Pearl said, in a speech alongside Van Hollen, that millionaires such as himself are “willing and even happy to pay more in taxes to help [the U.S.] become the kind of country [it] can be.”
The bill would also add an extra 10% tax to those who make as much as a dollar over $2 million per year, and an additional 12% for those who earn over $5 million annually. Materials distributed by Van Hollen’s office said, that the higher tax for millionaires would raise $1.46 trillion over the next decade.
Taxes have become an increasingly hot topic, and Maryland lawmakers make their opinions clear as the midterm general election inches closer.
Cosponsors of the act referred to President Trump’s “One Big Beautiful Bill Act,” passed last summer. They explained his new policy of no tax on tips may be a helpful “gimmick” to some, but it is not a permanent solution.
“Well, this beautiful bill, if you’re a billionaire or millionaire … gave you a big, whopping and permanent tax cut,” Van Hollen said in his speech, gesturing toward the chart beside him. The data showed that almost 50% of tax cuts went to the top 5% wealthiest in America.