WASHINGTON, D.C. (KGUN) — A group of Senate Democrats on Thursday unveiled legislation that would eliminate federal income taxes for millions of Americans and sharply reduce taxes for many more — paid for, the sponsors say, by a surtax on the ultra‑wealthy.
VIDEO: Watch Senator Kelly speak about the bill this morning on the Senate floor:
The Working Americans Tax Cut Act, introduced by Sens. Mark Kelly (D‑Ariz.), Chris Van Hollen (D‑Md.), Kirsten Gillibrand (D‑N.Y.), Cory Booker (D‑N.J.), Andy Kim (D‑N.J.) and Rep. Don Beyer (D‑Va.), would remove federal income tax liability for individual filers with incomes below about $46,000 (and the equivalent threshold for married couples), and provide scaled tax relief for people earning up to roughly $80,500.
“Families across Arizona are working hard and doing everything right but still falling behind,” Kelly said at a Capitol Hill rollout this morning. “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 hard work pays off.”
The sponsors say the bill is fully paid for by levying an added surtax on incomes above $1 million so that the nation’s wealthiest residents “pay their fair share,” a provision the bill’s backers say would avoid increasing the national debt while extending broad, permanent relief to nearly 130 million workers.
Supporters framed the proposal as a corrective to the recent Republican tax law, which they say mainly benefited corporations and the very rich while offering only temporary help to lower‑ and middle‑income households.
Beyer called the surtax approach “a sensible plan to restore fairness to the tax code, fight rising inequality, and fund important priorities for the American people.”
Policy and fiscal skepticism from experts
Tax policy analysts and some progressive voices raised concerns about the mechanics and cost of the proposals.
Alex Jacquez, chief of policy and advocacy at the advocacy group Groundwork Collective, described the push on social media as “deeply misguided,” saying a race to exempt more people from paying federal income taxes risks eroding fiscal sustainability.
Politicians and officials from the other side of the aisle — and some past administration officials — have publicly raised objections.
In previous surtax debates, former Treasury Secretary Steven Mnuchin argued a surtax “would completely disincentivize capital investment,” a line that has been deployed by opponents to suggest higher levies on the wealthy can harm growth.
Political reality: slim chance in GOP Congress
Republicans, who control one chamber of Congress, are broadly opposed to surtaxes on high earners and to raising taxes on businesses or individuals viewed as “job creators.”
What’s next
The bill’s sponsors framed the measure as a long‑term offer to reshape the tax code in favor of working families. Whether it remains a messaging vehicle or becomes the basis for negotiations depends heavily on Capitol Hill dynamics and the willingness of lawmakers to accept a surtax framework as the price for broad middle‑class relief.
With Republicans controlling at least one chamber and a range of policy experts pressing for more detailed scoring of revenue and economic impacts, the proposal is likely to spark a broad public debate on taxation, fairness and fiscal tradeoffs in the months ahead.
