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Tax Cut Act: No Federal Tax for $46K Earners

3/17/2026

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Summary

Story summary

The Working Americans’ Tax Cut Act would eliminate federal income tax for individuals earning up to $46,000 per year.
To fund the plan, a Millionaire Surtax would be imposed on the wealthiest Americans to keep the measure deficit-neutral.
Even with these changes, individuals would still pay Federal Insurance Contributions Act (FICA) taxes and state taxes.
The measure was introduced by Representative Don Beyer and Senator Chris Van Hollen.

History

Historical Context

The Tax Cuts and Jobs Act (TCJA), signed into law by President Donald Trump on December 22, 2017, marked a significant overhaul of the U.S. tax system, reducing corporate tax rates from 35% to 21%. While it aimed to stimulate economic growth, studies indicated it disproportionately benefited the wealthy, with 65% of tax cuts going to the top 20% of earners, raising ongoing debates about tax equity.

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Story summary

The Working Americans’ Tax Cut Act would eliminate federal income tax for individuals earning up to $46,000 per year.
To fund the plan, a Millionaire Surtax would be imposed on the wealthiest Americans to keep the measure deficit-neutral.
Even with these changes, individuals would still pay Federal Insurance Contributions Act (FICA) taxes and state taxes.
The measure was introduced by Representative Don Beyer and Senator Chris Van Hollen.

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