Democratic Senators Propose Tax Cuts for Middle Class and Increases for Wealthy Ahead of 2028 Elections

Senators Chris Van Hollen of Maryland, Mark Kelly and Ruben Gallego of Arizona, and Cory Booker of New Jersey have proposed legislation to provide tax cuts for working and middle-class Americans. Van Hollen's bill, introduced in March 2024, would eliminate federal income taxes for married couples earning less than $92,000 annually and individuals earning less than $46,000, while increasing taxes on millionaires.

Booker's bill would make the first $75,000 of income for married couples tax-free and raise taxes on the wealthy.

The proposals include additional measures such as lowering income taxes for millions of middle-class Americans and enacting state-based tax cuts and credits. Supporters, including the group Patriotic Millionaires, argue that these changes would allow working people to retain more of their earnings to cover living expenses.

“If you are working paycheck to paycheck and making just enough to cover your basic cost-of-living expenses, then you shouldn't have that taxed away at the federal level.”

“— Sen. Chris Van Hollen, March 2024 (Axios)”

Critics within the Democratic Party, including policy experts, contend that the plans would reduce revenue needed for social services and government programs. Alex Jacquez, a former Biden White House aide now at the Groundwork Collaborative, described the proposals as suboptimal policy that diverts funds from other priorities.

A Democratic operative in Washington, D.C., noted internal opposition among policy experts.

Erica Payne, president of Patriotic Millionaires, which assisted in crafting Van Hollen's plan, defended the approach, stating that 86% of Americans are concerned about grocery prices and should keep more of their income. David Bergstein, a spokesperson for Booker, said the senator views the tax cuts as a way to address the affordability crisis by ensuring corporations and the wealthy pay their fair share.