Patriotic Millionaires: Working Americans’ Tax Cut Act and The Equal Tax Act

Patriotic Millionaires’ Erica Payne joins Katie Phang with an exciting update on two new pieces of legislation introduced in Congress that benefit working-class Americans: the Equal Tax Act and the Working Americans’ Tax Cut Act. Both bills pursue economic stability and prosperity for all Americans with an honest assessment that the millionaire class is long overdue in carrying its tax weight.
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The Working Americans’ Tax Cut Act and the Equal Tax Act (proposed in March 2026) are linked legislative proposals aimed at reducing taxes for middle-class households by taxing high earners. The Tax Cut Act provides a trillion tax cut for working families by establishing a "cost-of-living" exemption, funded by a trillion surtax on income over million.

Working Americans’ Tax Cut Act (WATCA) (S. 3676 / H.R. 7937)
Purpose: Provides a substantial tax break for low- and middle-income individuals.
Key Mechanic: Creates a maximum federal income tax rate of on modified adjusted gross income. It creates a "cost-of-living exemption" (roughly of the annual median cost of living, or for married couples).
Impact: Estimated to cut taxes for over 100 million households, with benefits concentrating in the middle of the income distribution.
Funding: Funded by a new tiered surtax on millionaires.

The Equal Tax Act
Purpose: Ensures wealthy investors are not taxed at lower rates than working people.
Key Mechanic: Taxes capital gains and investment income at the same rate as labor income for individuals earning over million.
Loopholes: Ends the "stepped-up basis" loophole, which allows investors to avoid taxes on capital gains when passing assets to heirs.
Goal: Aims to reduce wealth concentration and ensure parity between wealthy investors and working families.

Together, these proposals aim to shift the tax burden upward, reducing federal income tax for lower-earning Americans.

Rocket River

 

I like the Idea.
Definitely something the DEMS should have in Operation 2029

Rocket River

 

Still interesting

Rocket River