U.S. Representative Chris Van Hollen on Monday unveiled legislation to boost the middle class by giving many families a tax cut that would be countered by a fee on financial transactions and reduced tax benefits for the top 1 percent of earners.
Van Hollen, a Democrat from Maryland, said in prepared remarks that his plan would encourage companies to raise workers’ wages. It also would limit corporate deductions of bonuses paid to executives in excess of $1 million, unless the companies can show their workers are getting pay raises that reflect productivity and cost-of-living changes.
The plan also would give tax benefits to companies that invest in employee training programs and increase deductions for child daycare expenses.
“We can pay for these new tax benefits for working Americans by changing the ways our current tax code is rigged in favor of those who make money off of money and against those who make money from work,” Van Hollen said.
Income equality has been a major issue for Democrats, but the proposal has little chance of getting through Congress, where Republicans now have majorities in both the Senate and House.