Democrats Back Massive Tax Break for Middle Class

“Senior Democrats, dissatisfied with the party’s tepid prescriptions for combating income inequality, are drafting an ‘action plan’ that calls for a massive transfer of wealth from the super-rich and Wall Street traders to the heart of the middle class,” the Washington Post reports.

“The centerpiece of the proposal, set to be unveiled Monday by Rep. Chris Van Hollen (D-Md.), is a ‘paycheck bonus credit’ that would shave $2,000 a year off the tax bills of couples earning less than $200,000. Other provisions would nearly triple the tax credit for child care and reward people who save at least $500 a year. The windfall — about $1.2 trillion over a decade — would come directly from the pockets of Wall Street ‘high rollers’ through a new fee on financial transactions, and from the top 1 percent of earners, who would lose billions of dollars in lucrative tax breaks.”