A Democratic bill with 14 Democratic cosponsors · See all 14 cosponsors
Last activity — Referred to the House Committee on Ways and Means.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
The Working Americans' Tax Cut Act aims to modify the Internal Revenue Code of 1986 regarding income taxation. The bill introduces an alternative maximum tax for qualified low- and middle-income individuals. This new tax cap is set at 25.5 percent of modified adjusted gross income above a cost-of-living exemption. Additionally, the bill implements a new surcharge on high-income individuals. This surcharge includes rates of 5 percent, 10 percent, and 12 percent based on specific income thresholds. Both major provisions are set to apply to taxable years beginning after December 31, 2025.
Yes· 3 of 6
- Scored +6
Would households on low incomes be better off under this?
The bill provides a specific tax cap for individuals with modified adjusted gross income below 175 percent of the cost-of-living exemption.
- Scored +5
Would middle-income households be better off under this?
The bill introduces an alternative maximum tax of 25.5 percent for qualified individuals within certain income thresholds.
- Scored +5
Does this cut taxes for middle-income families?
The bill implements an alternative maximum tax of 25.5 percent for qualified low- and middle-income individuals.
The opposite
- Scored -8
Would people with substantial wealth be better off under this?
The bill applies increasing surcharge rates of 5, 10, and 12 percent on very high annual incomes.
- Scored -8
Does this raise taxes on the highest earners?
The bill imposes a new surcharge of up to 12 percent on high-income individuals earning over $5,000,000.
- Scored -7
Would high-income households be better off under this?
The bill imposes a tiered surcharge on income exceeding $1,000,000.
Who it would affect, and how
Potential Positive Impacts for People
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Tax Cap for Low- and Middle-Income Individuals: Under Section 2, a "qualified individual" (someone with modified adjusted gross income less than 175 percent of the cost-of-living exemption) will have their tax capped at 25.5 percent of their income above the cost-of-living exemption. This provides a specific tax limit for these individuals (Section 2(a)).
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Adjustable Cost-of-Living Standards: The bill uses an "annualized cost of living wage" which is tied to the Consumer Price Index (CPI-U) to determine exemptions (Section 2(c)). This ensures the cost-of-living exemption can be adjusted based on economic changes reported by the Bureau of Labor Statistics.
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Increased Thresholds for Joint Filers: For those subject to the high-income surcharge, the dollar amounts used to calculate the tax are increased by 50 percent for taxpayers making a joint return (Section 3(c)).
Potential Negative Impacts for People
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New Surcharge for High-Income Earners: High-income individuals will face an additional tax. This includes a 5 percent tax on income between $1,000,000 and $2,000,000, a 10 percent tax on income between $2,000,000 and $5,000,000, and a 12 percent tax on income exceeding $5,000,000 (Section 3(a)).
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Income Threshold Limitations for Qualified Individuals: An individual only qualifies for the alternative maximum tax if their modified adjusted gross income remains below 175 percent of the cost-of-living exemption (Section 2(b)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would households on low incomes be better off under this? — The bill provides a specific tax cap for individuals with modified adjusted gross income below 175 percent of the cost-of-living exemption. Would middle-income households be better off under this? — The bill introduces an alternative maximum tax of 25.5 percent for qualified individuals within certain income thresholds. Would retired people be better off under this? — The bill specifically incorporates Social Security benefits into the definition of modified adjusted gross income for the tax cap calculation. Would people over 65 be better off under this? — The bill adjusts the cost-of-living exemption based on the Consumer Price Index to protect purchasing power. Would people with substantial wealth be better off under this? — The bill applies increasing surcharge rates of 5, 10, and 12 percent on very high annual incomes. Would high-income households be better off under this? — The bill imposes a tiered surcharge on income exceeding $1,000,000.
- Economy And Finance
- Does this cut taxes for middle-income families? — The bill implements an alternative maximum tax of 25.5 percent for qualified low- and middle-income individuals. Does this make the government pay for what it commits to? — The bill increases federal revenue through new surcharges on high-income earners. Does this raise taxes on the highest earners? — The bill imposes a new surcharge of up to 12 percent on high-income individuals earning over $5,000,000.
- 11/11/2026
- 1 Cosponsor added.
- 8/3/2026
- 1 Cosponsor added.
- 6/10/2026
- 1 Cosponsor added.
- 5/21/2026
- 1 Cosponsor added.
- 5/12/2026
- 1 Cosponsor added.
- 4/14/2026
- 2 Cosponsors added.
- 3/26/2026
- 1 Cosponsor added.
- 3/16/2026
- Referred to the House Committee on Ways and Means.
- 6 Cosponsors added.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Angie CraigDemocrat · Minnesota
Danny DavisDemocrat · Illinois
Christopher DeluzioDemocrat · Pennsylvania
Maxine DexterDemocrat · Oregon
Bill FosterDemocrat · Illinois
Teresa Leger FernandezDemocrat · New Mexico
John LarsonDemocrat · Connecticut
George LatimerDemocrat · New York
John MannionDemocrat · New York
Sarah McBrideDemocrat · Delaware
Emily RandallDemocrat · Washington
Shri ThanedarDemocrat · Michigan
Gabe VasquezDemocrat · New Mexico
Maxine WatersDemocrat · California