Democrats, led by Maryland Rep. Chris Van Hollen, are set to unveil an “action plan” that proposes a transfer of wealth from Wall Street and the super-rich to the middle class.
Van Hollen’s plan would essentially cut $2,000 per year off “the tax bills of couples earning less than $200,000,” according to the Washington Post, with the money from the cut coming from a “financial transactions fee” for the top one percent of earners in the country. That percent of earners, those who pull in an average of $1.4 million a year, currently see the majority of economic growth.
“Too often, Republicans and too many Democrats think that macroeconomic growth is pretty much all you need to lift the middle class. And there’s no question that overall growth in GDP and corporate profitability are necessary. But they’re obviously not sufficient,” former Obama economist Jared Bernstein said. Bernstein added that Van Hollen’s plan acknowledges the need for “more policy in place to help reconnect middle-class families with overall growth.”
“This is a plan to help tackle the challenge of our times,” Van Hollen said. “We want a growing economy that works for all Americans, not just the wealthy few." The plan would reportedly save the middle class about $1.2 trillion over the course of 10 years.
Van Hollen’s plan, if implemented, would also push employers to raise wages.
The chances of such a tax cut being approved by the new Republican-controlled Congress are slim, however, so Democrats are instead “looking to craft an alternative to GOP plans to cut tax rates for the top earners, and to shape a new Democratic agenda for 2016 that offers voters the promise of genuine change.”