For Immediate Release
Thursday, March 12, 2026
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Patriotic Millionaires applaud landmark tax legislation introduced by Senators Van Hollen and Kelly, Rep. Beyer
Whether you blame Trump’s tariffs, Bidenomics, or greedflation, the cost of living in America is up and working people are struggling to meet their basic needs
WASHINGTON, DC—Today, standing alongside members of the Patriotic Millionaires, Senators Chris Van Hollen (MD), Mark Kelly (AZ), Kirsten Gillibrand (NY), Cory Booker (NJ), Andy Kim (NJ), and Representative Don Beyer (VA-08) introduced the Working Americans’ Tax Cut Act (WATCA), a landmark piece of legislation that would provide a substantial tax cut for working people, paid for by millionaires. The bold and surprisingly simple legislation addresses the second of three key components from Patriotic Millionaires’ legislative platform, The MONEY Agenda. It is the second piece of legislation from The MONEY Agenda to be introduced within the past year.
The Working Americans’ Tax Cut Act is an affordability tax cut that creates an exemption for federal income taxes up to the “cost of living” for low- and middle-income Americans and shifts the responsibility for the lost revenues onto taxpayers with incomes over $1 million. According to an analysis by the Institute on Taxation and Economic Policy, WATCA would provide economic relief and stability to 130 million people, including 104 million adults and the 26 million children who rely on them for their safety and security.
“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 Senator Van Hollen.
“At this point in American life, both parties want to be the party of the working class. Over the summer, Republicans tried to prove themselves by putting forward a budget bill that only offers tax relief for the 3% of working people who rely on tips. But today, Senator Van Hollen and his Democratic colleagues made their pitch to wear the label by introducing a bill that provides help to ALL working people. To us, it’s abundantly clear who actually deserves it,” said Morris Pearl, Chair of Patriotic Millionaires. “This is a watershed moment that would offer economic stability to a vast majority of the country. Millionaires like me will be better off paying a little more in taxes so that all of the workers we depend on can afford to provide for their families. That’s why the Patriotic Millionaires are thrilled to see Senator Van Hollen, Senator Kelly, Representative Beyer, and their colleagues introduce the Working Americans’ Tax Cut Act to get our country on a better and more sustainable path for the sake of our economy and democracy.”
“Bye bye abundance! For millions of workers and families across the country, affordability is not just a buzzword or a talking point, it’s real life. Whether you blame Trump’s tariffs, Bidenomics, or greedflation, the cost of living in America is up and working people are struggling to meet their basic needs. Luckily, the Working Americans’ Tax Cut Act is an efficient, effective, and politically powerful way to deliver significant resources directly to the American people without costing the government a cent,” said Erica Payne, Founder and President of Patriotic Millionaires. “This bill is the ultimate litmus test for voters to see whether their elected officials stand with their constituents or their donors. With the Working Americans’ Tax Cut Act, Senator Van Hollen is setting the terms of the economic debate for the Democratic party and anyone considering a presidential run.”
“The Working Americans’ Tax Cut Act is 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, AFT President.
Among other things, the Working Americans’ Tax Cut Act:
- Provides a Cost of Living Exemption (COLE) on federal taxes up to the cost of living for a single adult with no children (approximately $46,000 per year). It will take into account married couples filing jointly, too.
- Transfers the responsibility for the lost revenue to the millionaire class by establishing a surtax on incomes over $1 million for single taxpayers. It will apply:
- A 5% surtax on any income over $1 million for single filers and $1.5 million for joint filers.
- A 10% surtax on any income over $2 million for single filers and $3 million for joint filers.
- A 12% surtax on any income in excess of $5 million for single filers and $7.5 million for joint filers.
- Is deficit-neutral and only applies to federal income tax, not payroll or local taxes.
When the federal income tax was first enacted in 1913, it was a “class tax” levied exclusively on upper-middle and wealthy households, designed to complement the many regressive taxes that lower- and middle-income households were already paying, such as tariffs and excise taxes. Over a century later, steep income tax cuts for those at the very top combined with additional taxes on the labor income of low- and middle-income households has upended that framework. Americans now begin paying federal income taxes at $16,000, an amount significantly below the estimated $46,000 that the median single adult with no children in America needs for essentials like rent, healthcare, and groceries.
Senator Van Hollen is joined in the Senate by his colleagues Mark Kelly (D-AZ), Cory Booker (D-NJ), Kirsten Gillibrand (D-NY), Andy Kim (D-NJ), Angus King (I-ME), Ed Markey (D-MA), Lisa Blunt Rochester (D-DE), Chris Coons (D-DE), Jeff Merkley (D-OR), Peter Welch (D-VT), Tammy Baldwin (D-WI), Mazie Hirono (D-HI), Brian Schatz (D-HI), Dick Durbin (D-IL), Adam Schiff (D-CA), Ruben Gallego (D-AZ), Richard Blumenthal (D-CT), and Martin Heinrich (D-NM). In the House, Representative Don Beyer is joined by co-sponsors Shri Thanedar (MI-13), Emily Randall (WA-06), John Larson (CT-01), Chris Deluzio (PA-17), Sarah McBride (DE-AL), and Danny Davis (IL-07).
Patriotic Millionaires is a collection of wealthy Americans united in their concern over historic and destabilizing levels of economic inequality. Other organizations that endorse the Working Americans’ Tax Cut Act include: AFL-CIO; AFT; Americans for Tax Fairness; Accountable.US/Accountable.NOW; Community Change Action; Democratic Capitalism Initiative; Demos; Indivisible; Institute for Policy Studies; MoveOn; National Education Association; NETWORK Lobby for Catholic Social Justice; Oxfam America; People’s Action; Public Citizen; Responsible Wealth; Showing Up for Racial Justice; Social Security Works; Strong Economy for All Coalition; Take On Wall Street; United for a Fair Economy; and Voices for Progress.
For more information about the Working Americans’ Tax Cut Act, access a one-pager about the bill HERE. To access the full text of the legislation, see HERE.
For interview requests with Morris Pearl, Erica Payne, or other members of the Patriotic Millionaires, please contact Emily McCloskey at emily@patrioticmillionaires.org and Jenna Grande at jenna@patrioticmillionaires.org.
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