U.S. Senators Chris Coons (D-Del.), Lisa Blunt Rochester (D-Del.), and colleagues introduced a bill to eliminate federal income taxes for Americans making under $46,000; the bill is fully paid for by ensuring Americans making over a million dollars pay their fair share.
Introduce and support legislation to eliminate federal income taxes for Americans making under $46,000, paid for by increasing taxes on Americans making over a million dollars.
Occurrences
Senators Coons ... introduced the Working 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.
Maryland Sen. Chris Van Hollen kicked off the debate in March by calling to get rid of federal income taxes for every married couple earning less than $92,000 annually — and any individual making less than $46,000 — while hiking taxes on millionaires. The bill also would lower, but not eliminate, income taxes for millions more middle-class Americans. Other possible presidential candidates, including Arizona Sens. Mark Kelly and Ruben Gallego, signed onto Van Hollen's plan.
Sen. Van Hollen and Rep. Don Beyer (D-VA) have introduced a competing vision for tax relief: the "Working Americans' Tax Cut Act" ( WATCA ). Instead of creating a higher standard deduction, this plan proposes a new "alternative maximum tax" system. Under WATCA, the first $46,000 of income for single filers ($92,000 for married couples filing jointly) would be entirely exempt from federal income tax. To qualify, a taxpayer's income would have to be 175% or less of the exemption amount (roughly $80,500 for individuals or $161,000 for couples, per the Penn Wharton Budget Model ). Qualified taxpayers would then calculate their tax bill in two ways and pay whichever is lower: The current federal income tax code. A flat 25.5% rate applied only to adjusted gross income (AGI) above the $46,000 or $92,000 threshold. Van Hollen proposes a tiered surtax on high earners to ensure the legislation is "fully paid for." 5% surtax on incomes above $1 million (or $1.5 million for joint filers), 10% surtax on incomes above $2 million (or $3 million for joint filers), 12% surtax on incomes above $5 million ($7.5 million for joint filers). "[The proposal] avoids raising the national debt," Hollen stated in a press release regarding the surtax, "by ensuring the wealthiest pay their fair share."
On March 17, 2026, Senators Lisa Blunt Rochester and Chris Coons, along with colleagues, introduced the Working Americans’ Tax Cut Act. The bill proposes eliminating federal income taxes for Americans earning under $46,000 and is fully paid for by ensuring Americans making over a million dollars pay their fair share.
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.
Evidence
On March 17, 2026, Senator Chris Coons, along with Senators Lisa Blunt Rochester, Chris Van Hollen, Mark Kelly, Kirsten Gillibrand, Cory Booker, and Andy Kim, introduced the Working Americans’ Tax Cut Act. This legislation aims to eliminate federal income taxes for Americans earning under $46,000 and is fully funded by a tiered surtax on incomes above one million dollars.
On March 17, 2026, Senators Lisa Blunt Rochester and Chris Coons, along with colleagues, introduced the Working Americans’ Tax Cut Act. The bill proposes eliminating federal income taxes for Americans earning under $46,000 and is fully paid for by ensuring Americans making over a million dollars pay their fair share.
On March 16, 2026, Representative Don Beyer introduced the Working Americans’ Tax Cut Act in the House, proposing to eliminate federal income taxes for individuals earning under $46,000, funded by a tiered surtax on incomes above one million dollars. This bill aligns with the Senate version introduced by Senator Chris Van Hollen and co-sponsored by Senator Chris Coons.
In March 2026, Senator Chris Van Hollen and Representative Don Beyer introduced the Working Americans' Tax Cut Act, proposing to exempt the first $46,000 of income for single filers and $92,000 for married couples from federal income tax. This plan includes surtaxes on high-income earners to offset the cost and has garnered support from other senators, including Chris Coons.
In April 2026, Senator Chris Van Hollen proposed eliminating federal income taxes for individuals earning under $46,000 and married couples under $92,000, while increasing taxes on millionaires. This proposal has received support from other senators, including Chris Coons.
Assessments
Senator Coons both co-introduced and supported legislation to eliminate federal income taxes for Americans earning under $46,000, funded by higher taxes on millionaires. However, the evidence only shows introduction and support of the legislation, not passage or enactment. Therefore, while substantial effort was demonstrated, the promised outcome was not fully delivered.