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.

Join AFGE Today


Shutdown Lawsuit

Diversity Week

AFGE Events

Event Calendar is for Members Only. Please Log In to see our calendar of events.


SUBSCRIBE Latest news & info