Chris Van Hollen

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In the interview, Van Hollen responded to the criticism by arguing that his tax cut differs from Republican tax cuts in that it is limited to working-class people.

He drew a contrast between his proposal and the One Big Beautiful Bill Act, the Republican-backed tax-and-spending bill signed into law by President Donald Trump last year. He said that with the GOP bill, 75% of the benefits go to the top 20% wealthiest people.

“In my proposal, 100% of the benefits go to everybody else,” he said. “In other words, everybody who’s not in the top 20%.”

Van Hollen also addressed the criticism that his plan would add to deficits, emphasizing that the tax cuts are part of a larger agenda that also involves raising taxes on the wealthy.

“It is the case that in this proposal, the tax cuts go to people who have tax liability, and that’s by design,” Van Hollen said. “And the idea there is people working paycheck to paycheck should be able to keep more of what they earn.”

To provide relief specifically to lower-income families, Van Hollen has co-sponsored legislation to expand the child tax credit and the earned income tax credit. Both of those tax credits can benefit families with no income tax liability.

Van Hollen, who is serving his second term in the Senate after being elected in 2016, noted that his plan has support from people on the Left, such as Sen. Bernie Sanders (I-VT), as well as more centrist members of his party. He also mentioned that he supports a wealth tax proposal from Sanders.

“I see this as a major piece of an overall tax fairness plan. But it’s not the only piece,” Van Hollen said.

The senator is positioning himself as a champion for middle-class tax cuts heading into the 2028 elections.

“I think having a fair tax code is going to be a big issue in 2028, because right now we have a tax code that is stacked in favor of people who make money off of money, and against those who earn a paycheck through hard work,” he said during an interview.

“And so yes, this should be a big issue,” Van Hollen continued. “When I say this, I mean having a fair tax policy. And as I said, I see this as one piece of that overall effort. And whatever form it takes, I do intend to be very involved in the debate over the direction of the Democratic Party.”

Van Hollen’s legislation, dubbed the Working Americans’ Tax Cut Act, essentially eliminates federal income taxes through a “cost-of-living” exemption. The exemption would apply to individuals earning under $46,000 annually — the median cost of living for a single adult with no children, according to the senator — or to couples earning $92,000.

The legislation phases out the cost-of-living exemption as incomes increase.

Van Hollen claims that his legislation would be fully paid for through a tiered surtax structure on millionaires.

For individual tax filers, the plan would impose a 5% surtax on income above $1 million, a 10% surtax above $2 million, and a 12% surtax above $5 million. For joint filers, those thresholds would be 5% on income above $1.5 million, 10% above $3 million, and 12% above $7.5 million.

The surtax would apply not only to wage income but also to capital gains and other investment income.

The centerpiece of the plan, though, would be eliminating taxes for many middle-class families, many of whom are voters who have been plagued by inflation in recent years. Currently, 63.3 million tax filers have zero or negative tax liability after credits, Erica York, vice president of federal tax policy at the Tax Foundation, told the Washington Examiner. Under the Van Hollen proposal, that number would increase to 95 million.

Looking ahead, Van Hollen said he thinks there could be broad support for middle-class tax cuts.

“I think there’ll be a lot of momentum behind this. And as I said, there’s already a very big coalition that is supporting this legislation,” he said.

Van Hollen has a long history on Capitol Hill. Prior to joining the Senate in 2017, he served as a congressman from Maryland from 2003 to 2017.

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When asked if the Democratic presidential nominee in 2028 will have middle-class tax cuts as a plank in his or her platform, he said he will work to ensure that.

“Well, I’m certainly going to do everything I can to make sure that happens,” Van Hollen responded.