Blumenthal Joins New Bill to Cut Taxes for Millions of Working Americans

[Hartford, CT] Today, U.S. Senator Richard Blumenthal (D-CT) joined Senate colleagues in introducing theWorking Americans’ Tax Cut Act, new 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.
This bill provides broad, permanent tax cuts to nearly 130 million working Americans and eliminates federal income taxes for Americans who make under the median cost of living, $46,000. The bill additionally 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. This proposal stands in stark contrast to tax law that Donald Trump and Republicans in Congress passed last year – which provided a tax giveaway to billionaires and exploded the deficit, while offering only temporary relief for some working families.
The bill, led by Senators Van Hollen (D-MD), Kelly (D-AZ), Gillibrand (D-NY), Booker (D-NJ), and Kim (D-NJ) and Representative Beyer (D-VA) was joined by Senators Blumenthal (D-CT), Durbin (D-IL), Sanders (I-VT), Merkley (D-OR), Coons (D-DE), Schatz (D-HI), Baldwin (D-WI), Hirono (D-HI), Heinrich (D-NM), King (I-ME), Markey (D-MA), Welch (D-VT), Schiff (D-CA), and Blunt Rochester (D-DE).
“This bill enacts broad tax cuts for working families—providing economic relief and ensuring that working Americans can afford their basic expenses under President Trump’s skyrocketing cost of living,”said Blumenthal.“Trump has cozied up to the billionaire class, providing massive tax breaks for the wealthy while ignoring the needs of the American working class. By reducing federal income taxes based on income level, the Working Americans’ Tax Cut Act puts money back into the pockets of working families and ensures they can meet their needs.”
“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. 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 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 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 Gillibrand.“I’m proud to cosponsor the Working Americans' Tax Cut Act to 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 Kim.
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.
This legislation has 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.
According to an analysis by the Institute for Taxation and Economic Policy, nearly 130 million people, including over 25 million children, would receive a tax cut through this legislation. Additionally, it is fully paid for through a tiered surtax on millionaires. The bill applies an additional 5 percent tax to the first dollar an individual makes over $1 million and the first dollar a married couple earns over $1.5 million annually; an additional 10 percent tax to the first dollar an individual makes over $2 million and a married couple makes over $3 million annually; and an additional 12 percent tax to the first dollar an individual makes over $5 million and a married couple makes over $7.5 million annually. This surtax would apply equally to wages and salaries as well as to capital gains and other investment income. The Yale Budget Lab has estimated that this surtax would impact 615,000 tax filers and raise $1.46 trillion over ten years.
The full text of the bill is availablehere.
-30-