Democratic Lawmakers Pitch Millionaire Tax in Affordability Plan

Sen. Chris Van Hollen proposed paying for tax breaks for middle-class Americans with levies on millionaires—something the Maryland Democrat said during a Thursday press conference should be a fundamental pillar of any future Democratic tax plan.

His bill would allow workers making under $46,000 annually to no owe any federal income taxes, and reduce the tax bills for earners close to that threshold. It would provide a tax cut of roughly $2,800 for a single person earning $50,000, according to a fact sheet Van Hollen’s office distributed. The bill aims to offset the cost of the tax cuts by including a surtax on incomes above $1 million.

The plan is representative of a growing sentiment in the Democratic Party to use tax breaks for lower-income people to achieve affordability.

Sen. Cory Booker (D-N.J.), who ran for president in 2020, also released a tax plan this week that similarly called for tax breaks for lower-income people while raising taxes on the wealthy. Such proposals have drawn fire from progressives who have questioned whether new tax revenue should be used to cut taxes instead of targeting problems such as child poverty, job losses, or the rising cost of housing.

Van Hollen said he sees the bill as “a critical part of our overall effort.”

“People who do have federal income tax liability, who are still just barely getting by and making ends meet—they need a little relief, too,” he said.

Van Holllen was joined by fellow potential 2028 presidential hopeful Sen. Mark Kelly (D-Ariz.) in rolling out the legislation, as well as Rep. Don Beyer (D-Va.).