Welch Joins New Bicameral Bill to Cut Taxes for Millions of Working Americans

Mar 16, 2026
Bill eliminates federal income taxes for Americans making under $46,000; is fully paid for by ensuring Americans making over a million dollars pay their fair share
WASHINGTON – U.S. Senator Peter Welch (D-Vt.),a member of the Senate Finance Committee, joinedU.S. Senators Chris Van Hollen (D-Md.),Mark Kelly (D-Ariz.),Kirsten Gillibrand (D-N.Y.),Cory Booker (D-N.J.),Andy Kim (D-N.J.)andU.S. Representative Don Beyer (D-VA-08)in introducing theWorking Americans’ Tax Cut Act, new bicameral legislation to provide much-needed tax relief for millions of working Americans who are struggling to afford the cost of living as wages remain stagnant and prices rise.
The lawmakers’ bill provides broad, permanent tax cuts to nearly 130 million working Americans and eliminates federal income taxes for Americans who earn less than $46,000, the median cost of living. Additionally, the legislation provides a significant tax break to individuals making between $46,000 to $80,500, with proportionally higher rates for heads of households and married couples. The legislation is fully paid for and avoids raising the national debt by ensuring the wealthiest pay their fair share through a tiered surtax on income above a million dollars.
TheWorking Americans’ Tax Cut Actstands in stark contrast to tax law that President Trump and Congressional Republicans passed last year—which provided a tax giveaway to billionaires and exploded the deficit, while offering only temporary relief for some working families.
“Income inequality in our country is the highest it’s ever been. That’s in no small part to Republicans’ tax law, which not only exploded the deficit, but delivered huge tax cuts to the wealthiest top 1% of Americans at the expense of working-class people,”said Senator Welch.“Hardworking families already struggling to make ends meet should not be paying higher taxes than millionaires—it’s time to put money back in the pockets of everyday Americans.”
“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 expense – should not have to pay a federal income tax. 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,”said Senator Van Hollen.
“Families across Arizona are working hard and doing everything right but still falling behind. Instead of helping them get ahead, Trump gave more huge tax breaks to the wealthiest Americans while hiking up prices on everyone else,”said Senator Kelly.“Our plan is to put more money in the pockets of middle-class Americans —from nurses and teachers to firefighters and electricians —and restore the basic promise that in this country, hard work pays off.”
“Families are struggling amidst higher costs in Trump’s America,”said Senator Gillibrand.“I’m proud to cosponsor theWorking Americans’ Tax Cut Actto support working families, drive economic growth, and reduce income inequality. While the Trump administration turns its back on hardworking Americans, I will keep fighting to lower costs and make sure Americans can take home more of their hard-earned pay.”
“It’s unacceptable that while so many are struggling to afford everyday expenses in our country, those at the top still aren’t paying their fair share. While Trump continues to protect a system that only works for his billionaire buddies, this tax proposal delivers real relief to working Americans – and it can’t come soon enough,”said Senator Kim.
“For decades, our tax code has been tilted to benefit the wealthiest Americans – especially those making millions of dollars each year from investments and capital gains. Our bill would restore balance and fairness to our tax code by asking the wealthiest Americans to contribute more through a tiered surtax on income above one million dollars. That revenue will deliver meaningful tax relief for working Americans trying to afford basic necessities like groceries, rent, child care, and gas,”said Representative Beyer.
TheWorking Americans’ Tax Cut Actprovides needed tax relief for working Americans— whether they are a single adult, a head of household, or a married couple filing jointly—by reducing their federal income taxes based on their income to help ensure they can afford their cost of living expenses. According to an analysis by the Institute for Taxation and Economic Policy, nearly 130 million people would receive a tax cut through this legislation. This would benefit nearly 25 million children. Additionally, it is fully paid for through a tiered surtax on millionaires.
Joining Senators Welch, Van Hollen, Kelly, Gillibrand, Booker, and Kim on this legislation in the Senate are Sens. Dick Durbin (D-Ill.), Bernie Sanders (I-Vt.), Jeff Merkley (D-Ore.), Chris Coons (D-Del.), Richard Blumenthal (D-Conn.), Brian Schatz (D-Hawaii), Tammy Baldwin (D-Wis.), Mazie Hirono (D-Hawaii), Martin Heinrich (D-N.M.), Angus King (I-Maine), Ed Markey (D-Mass.), Adam Schiff (D-Calif.), and Lisa Blunt Rochester (D-Del.).
ThisWorking Americans’ Tax Cut Acthas been endorsed by a broad range of organizations:AFL-CIO, American Federation of Teachers (AFT), Americans for Tax Fairness, Community Change Action, Demos, Get Out the Vote PAC, Indivisible, Institute for Policy Studies, MoveOn, National Education Association (NEA), NETWORK Lobby for Catholic Social Justice, Oxfam US, Patriotic Millionaires, People’s Action, Public Citizen, Social Security Works, Strong Economy for All Coalition, SURJ, Take on Wall Street, and United for a Fair Economy.
“Working people are one medical bill, one car repair, one bad break from not making rent,”said Liz Shuler,President,AFL-CIO. “They are working longer hours than ever and still struggling to put food on the table, while paying more in taxes than the billionaires. As we continue to fight for universal affordable health care, universal child care, and livable wages, theWorking Americans’ Tax Cut Actis an important step toward getting working people some real relief.”
“TheWorking Americans’ Tax Actis one of the most important concrete actions Congress can take to ease the squeeze on working families. Right now, workers can’t pay the bills. Their wallets are being drained by a severe affordability crisis caused by the current administration and aggravated by the ‘Big, Ugly Bill’, which doubled down on tax cuts for billionaires, while stripping healthcare and nutrition assistance away from everyone else. This long-overdue legislation puts cash back in the pockets of millions of Americans who are being forced to choose between paying the rent and putting food on the table. It is a meaningful down payment on a solution that actually works for workers and the AFT is proud to be leading on it,”said Randi Weingarten,President,American Federation of Teachers.
“The federal tax code should reflect a basic principle: the government should not tax people into poverty. TheWorking Americans’ Tax Cut Actdoes exactly that — it exempts income up to the cost of living from federal taxes and asks millionaires to make up the difference. That’s not redistribution. That’s math. DCI was founded on the principle that democracy and free markets work best when working people have real economic stability, and right now too many Americans are taxed before they can afford rent or groceries. This legislation is the kind of pragmatic, common-sense reform that can actually pass and actually help people — and that’s why DCI is proud to support it,”said Lori Mayberry,CEO,Democratic Capitalism Institute.
Learn moreabout theWorking Americans’ Tax Cut Act.
Read and downloadthe full text of the bill.
###