Van Hollen Proposes Plans to Expand Tax Breaks for Middle Class

Tired of listening/reading about Congress giving out unfair tax breaks to the rich? A member of Congress from Maryland has good news for you.

Photo: Rep Chris Van HollenEstablish a new tax credit of $1,000 per worker per year, or $2,000 for a two-earner couple. The new tax credit is for an individual earning less than $100,000 or $200,000 for a working couple.Rep. Chris Van Hollen is laying out plans to give the middle class a bigger paycheck. Here’s the highlight of what he proposed this week:

  • Prevent corporations from deducting executive compensation exceeding $1 million from taxes unless they are also raising worker wages and are not laying off employees.
  • Provide a 20% tax deduction for second earners in a household with dependents on up to $60,000 of their income.
  • Create a “Saver’s Bonus” program that would give $250 a year to every worker who saves at least $500 a year.
  • Raise the cap on the amount families can deduct for what they spend caring for a child or an elderly parent to $8,000 for one child and $16,000 for two or more children. (The current caps are $3,000 and $6,000 respectively).
  • Impose a 0.1% fee on financial transactions similar to those already in place in many countries in Europe. This measure is aimed at reining in on high-frequency trading and financial speculation, which only increase systematic risk and add no value for the economy. The measure would raise tens of billions of dollars a year that could be used to partially fund tax cuts for the middle class.
  • Read his entire plan.

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