Senator Van Hollen's Working Americans Tax Cut Act
Senator Chris Van Hollen's proposal, the Working Americans' Tax Cut Act (WATCA), aims to provide tax relief to low- and middle-income earners while imposing higher taxes on high-income individuals. The proposal includes:
Alternative Maximum Tax: A new tax calculation for low- and middle-income individuals, where the total tax owed will not exceed 25.5% of the taxpayer's adjusted gross income that exceeds a certain threshold known as the cost-of-living exemption.
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Surcharges on High-Income Individuals: A surtax on high-income individuals that adds a tax of 5% on income between $1,000,000 and $2,000,000, 10% on income between $2,000,000 and $5,000,000, and 12% on income exceeding $5,000,000.
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Budget-Neutral: The proposal is budget-neutral over the next decade, with the $1.6 trillion cost of the alternative maximum tax approximately offset by the AGI surtax.
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The proposal has been endorsed by various organizations and aims to ensure that Americans earning under the median cost of living do not pay federal income taxes, while also providing significant tax breaks to individuals making between $46,000 to $80,500.
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b]If we win big in 28, this is something that we could pass.