Democrats in the Senate and House have introduced the Working Americans’ Tax Cut Act. The Wall Street Journal reports that this bill would eliminate federal income taxes for people who make less than $46,000 a year and reduce taxes for those earning up to $80,500.  

Senator Chris Van Hollen from Maryland and Representative Don Beyer from Virginia, along with other Democrats, introduced the bill. Their aim is to support families facing higher living costs and everyday expenses.  

“Far too many Americans are working hard for their paychecks, but still having trouble making ends meet,” Van Hollen said in a statement. “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.” 

 The bill’s main tax exemption is set at about $46,000 a year, which matches the estimated cost of living for a single adult without children. As income increases, the tax relief gets smaller. For example, someone making $50,000 could see a tax cut of about $2,800.  

 To cover the cost of these changes, the bill would add new surtaxes for people with high incomes. Higher tax rates would apply to income above certain millionaire thresholds.