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Working Americans' Tax Cut Act: Relief for low earners and surcharges for the wealthy

This bill introduces a tax limit for low- and middle-income individuals, protecting the amount needed for basic living expenses from high taxation. At the same time, it imposes new additional surcharges on individuals earning over one million dollars per year.
Key points
Introduction of a cost-of-living exemption of approximately $46,000 for individuals and $92,000 for married couples.
Capping the maximum tax for lower-income earners at 25.5% of income that exceeds basic living costs.
New surcharges for high earners: 5% over $1M, 10% over $2M, and 12% over $5M in income.
Automatic annual adjustment of amounts and thresholds based on the Consumer Price Index (CPI-U).
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Status:
Introduced
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Additional Information
Working Americans’ Tax Cut Act
Print number: HR 7937
Sponsor: Rep. Beyer, Donald S. [D-VA-8]
Process start date: 2026-03-16