Democratic Sen. Mark Kelly said Sunday that Democrats intend to confront Americans’ cost of living troubles with a package that includes higher taxes on people earning more than $1 million a year. The Arizona senator presented the idea as part of his party’s plan to lower costs.
Appearing on CBS’s Face the Nation, Kelly faced a direct question from host Margaret Brennan about what Democrats would actually do about the cost of living. His answer quickly moved from a promise of relief to Washington’s familiar solution of collecting [1] more money.
“Well, we’re going to lower costs for the American people,” Kelly said. He then pointed to legislation he introduced with Democratic Sen. Chris Van Hollen as the vehicle for delivering that promise.
Kelly said Democrats would need to win the House, the Senate, or both while also persuading Republicans to support their approach. His proposal combines tax reductions for many earners with new taxes targeting those at higher income levels.
“It raises taxes for people who make over a million dollars a year in income, and it provides tax cuts for people, individuals, and even couples who make up to about $160,000 a year, that’s some relief.”
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The measure, called the Working Americans’ Tax Cut Act, was introduced in March by Kelly, Van Hollen, and other congressional Democrats. It lays out the tax changes Kelly cited while answering Brennan’s question about lowering costs.
Under the legislation, federal income taxes would be eliminated for individuals earning less than $46,000. The proposal also would provide additional tax reductions for people earning as much as $80,500.
The income thresholds would be higher for married couples and heads of household. Kelly described the plan more broadly as offering relief to individuals and couples making up to about $160,000 annually.
Those tax cuts would be financed through a new tiered surtax imposed on high earners. The first tier would add a 5% tax on income above $1 million for individuals and above $1.5 million for married couples.
The proposal would climb further from there. Its highest tier would impose an additional 12% tax on income above $5 million for individual earners.
That is the central bargain behind Kelly’s answer to the cost of living question. Some Americans would receive lower federal income taxes, while those earning above the legislation’s specified levels would face additional taxes to finance the cuts.
Kelly framed the plan as direct relief for working Americans, although his prescription still begins with raising taxes elsewhere. The senator tied passage of the legislation to Democrats gaining control of at least one chamber of Congress and obtaining Republican support.
The Arizona Democrat, who is not up for reelection this year, also blamed the war in Iran and President Donald Trump’s tariff policies for higher prices. He argued that reversing the tariff policy would be another part of the Democratic response.
“Getting this tariff policy reversed, these ridiculous tariffs that have also jacked up prices,” he said. “The American people pay this.”
Kelly therefore offered both tax legislation and tariff changes as components of the party’s cost cutting agenda. His tax proposal would eliminate federal income taxes below one income threshold, reduce them for additional earners, and apply new surtaxes to people making more.
“So there are things, a lot of things, we can and will do once we win back the House and, or the Senate.”
For Kelly, that promised action depends on Democrats winning congressional power and advancing the Working Americans’ Tax Cut Act. For voters looking for the simple version, his televised answer was unmistakable: Democrats say they will lower costs partly by increasing taxes on people earning more than $1 million.