Rep. Don Beyer (D-VA) today introduced legislation that would create a tiered surtax on income above $1 million and use the revenue to eliminate federal income taxes for Americans earning less than the median cost of living.
The Working Americans’ Tax Cut Act, introduced with companion legislation by Sen. Chris Van Hollen (D-MD), would apply an additional 5% tax on individual income above $1 million, an additional 10% tax above $2 million and an additional 12% tax above $5 million. Higher thresholds apply to married couples. The surtax would cover both wages and investment income.
The Yale Budget Lab estimated the surtax would affect 615,000 tax filers and raise $1.46 trillion over 10 years, according to the press release.
Revenue from the surtax would fund tax relief for lower- and middle-income Americans. Individuals earning less than $46,000 — the estimated median cost of living for a single adult with no children, based on county-level data from the Living Wage Institute — would pay no federal income tax.
Those earning between $46,000 and $80,500 would also see a tax cut. A single person making $50,000 would receive an approximately $2,800 tax cut, according to the bill’s sponsors. The exemption phases out at 175% of the median cost of living.
The bill includes larger exemptions for heads of households (up to $64,400) and married couples filing jointly (up to $92,000), with corresponding phase-out thresholds. A family of four earning $95,000 would receive an approximately $6,000 tax cut, according to the press release.
An analysis by the Institute for Taxation and Economic Policy found nearly 130 million people, including over 25 million children, would receive a tax cut through the legislation.
“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,” Beyer said. “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.”
“Far too many Americans are working hard for their paychecks but still having trouble making ends meet,” Van Hollen said. “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.”
The bill has been endorsed by a range of organizations including the AFL-CIO, American Federation of Teachers, Americans for Tax Fairness, MoveOn, the National Education Association, Patriotic Millionaires and Public Citizen.
Beyer, who represents Virginia’s 8th Congressional District including Arlington and Alexandria, announced his reelection bid last year. He was recently endorsed by both Virginia senators for his 2026 campaign.
