A Democratic bill with 18 Democratic cosponsors · See all 20 cosponsors
Last activity — Read twice and referred to the Committee on Finance.
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 modifies the Internal Revenue Code of 1986. It creates an alternative maximum tax for low- and middle-income individuals based on a cost-of-living exemption. Additionally, it introduces a new surcharge tax for high-income individuals earning over $1,000,000. These changes are set to apply to taxable years beginning after December 31, 2025.
Yes· 3 of 6
- Scored +9
Does this raise taxes on the highest earners?
Imposes a significant new surcharge tax on individuals earning over $1,000,000.
- Scored +8
Would households on low incomes be better off under this?
Significantly reduces tax liability through the cost-of-living exemption.
- Scored +7
Is this likely to lift people out of poverty?
Reduces the tax burden on low-income individuals through the cost-of-living exemption.
The opposite· 3 of 4
- Scored -10
Would the very wealthiest people be better off under this?
Highest surcharge rate of 12% applies to income exceeding $5,000,000.
- Scored -10
Would billionaires be better off under this?
Directly increases tax burden via the high-income surcharge.
- Scored -9
Would people with substantial wealth be better off under this?
Directly targets individuals with high modified adjusted gross income with additional surcharges.
Who it would affect, and how
Potential Positive Impacts for People
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Tax Limit for Low- and Middle-Income Individuals: For those who qualify, the tax imposed will not exceed 25.5 percent of the excess of their modified adjusted gross income over the cost-of-living exemption. This is found in Sec. 2 (a).
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Cost-of-Living Adjustments: The bill provides exemptions based on the annualized cost-of-living wage, which is adjusted using the CPI-U to account for inflation. This is found in Sec. 2 (c)(2).
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Specific Exemptions for Household Types: The cost-of-living exemption is increased for joint returns (200 percent) and heads of household (140 percent), providing more protection for these groups. This is found in Sec. 2 (c)(1).
Potential Negative Impacts for People
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New Surcharge for High Earners: Individuals with a modified adjusted gross income exceeding $1,000,000 will be subject to an additional tax. The rates range from 5 percent for income between $1,000,000 and $2,000,000, up to 12 percent for income exceeding $5,000,000. This is found in Sec. 3 (a).
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Modified Income Calculations: For those seeking the low-income tax limit, their modified adjusted gross income is increased by certain excluded amounts and a portion of social security benefits, which could potentially disqualify them from being a "qualified individual." This is found in Sec. 2 (d).
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? — Significantly reduces tax liability through the cost-of-living exemption. Would middle-income households be better off under this? — Provides tax caps for qualified middle-income individuals. Would billionaires be better off under this? — Directly increases tax burden via the high-income surcharge. Would the very wealthiest people be better off under this? — Highest surcharge rate of 12% applies to income exceeding $5,000,000. Would people with substantial wealth be better off under this? — Directly targets individuals with high modified adjusted gross income with additional surcharges. Would high-income households be better off under this? — Imposes a new surcharge tax on income exceeding $1,000,000.
- Economy And Finance
- Does this raise taxes on the highest earners? — Imposes a significant new surcharge tax on individuals earning over $1,000,000. Does this cut taxes for middle-income families? — Creates a tax cap of 25.5% for qualified low- and middle-income individuals based on cost-of-living exemptions. Does this reduce what the federal government owes? — The surcharge on high earners may increase federal revenue, though low-income tax cuts may offset this.
- Social Issues And Justice
- Is this likely to lift people out of poverty? — Reduces the tax burden on low-income individuals through the cost-of-living exemption.
- 4/30/2026
- 1 Cosponsor added.
- 3/19/2026
- 1 Cosponsor added.
- 3/12/2026
- Read twice and referred to the Committee on Finance.
- 18 Cosponsors added.
- Introduced in Senate
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.
Tammy BaldwinDemocrat · Wisconsin
Richard BlumenthalDemocrat · Connecticut
Cory BookerDemocrat · New Jersey
Lisa Blunt RochesterDemocrat · Delaware
Christopher CoonsDemocrat · Delaware
Richard DurbinDemocrat · Illinois
Kirsten GillibrandDemocrat · New York
Ruben GallegoDemocrat · Arizona
John HickenlooperDemocrat · Colorado
Mazie HironoDemocrat · Hawaii
Martin HeinrichDemocrat · New Mexico
Mark KellyDemocrat · Arizona
Angus KingIndependent · Maine
Andy KimDemocrat · New Jersey
Edward MarkeyDemocrat · Massachusetts
Jeff MerkleyDemocrat · Oregon
Bernie SandersIndependent · Vermont
Adam SchiffDemocrat · California
Brian SchatzDemocrat · Hawaii
Peter WelchDemocrat · Vermont