Democrats Float Sweeping Middle-Class Tax Cuts

Two Democratic senators—and potential 2028 candidates—are rolling out dueling plans that would sharply shrink or erase federal income-tax bills for many households. Sen. Chris Van Hollen would eliminate income taxes for single filers under $46,000 and couples under $92,000, with benefits phasing out at higher incomes, reports the Wall Street Journal. Sen. Cory Booker's "Keep Your Pay" plan has thresholds of $37,500 and $75,000, and his plan also would raise the child tax credit and earned-income credit.

Both say they'd offset the breaks with higher taxes on the wealthy and corporations, but the plans are facing pushback from fellow Democrats, with party budget hawks warning that the approach could drain revenue needed for priorities like Social Security, health subsidies, and anti-poverty programs. (A Washington Post editorial agrees.) Roll Call takes note of a third suggestion, from Independent Sen. Bernie Sanders and Democratic Rep. Ro Khanna, to put into place a federal 5% annual wealth tax on billionaires. None of the plans are likely to advance in Congress or survive a presidential veto, notes the latter outlet, but all are part of the Democratic strategy to keep "affordability" a top issue in the 2026 midterms and in 2028.