Mark Kelly’s Affordability Bill Raises Taxes. So Would an Arizona Democrat Bill.
Updated: 22 hours ago
Summary: Sen. Mark Kelly says a federal bill that raises taxes is how Democrats would lower costs in their "affordability plan." Arizona House Democrats tried a state version this year. Here is what each bill would do and where each one stands.
ARIZONA and NATIONAL - On Face the Nation, host Margaret Brennan asked Sen. Mark Kelly how Democrats plan to lower costs. He pointed to a bill he backs with Sen. Chris Van Hollen: “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.”
Kelly is not on the ballot this year. His term runs through January 2029.
The Federal Bill: S.4083
• The bill is called the Working Americans’ Tax Cut Act. Van Hollen introduced it on March 12, 2026, and Kelly signed on.
• People earning under about $46,000 would pay no federal income tax. The tax cut shrinks as income rises and ends at about $80,500 for single filers and $161,000 for married couples.
• To pay for that, people earning over $1 million (or $1.5 million for married couples) would pay an extra federal tax of 5%. That extra tax rises to 10% and then 12% at higher incomes.
• The bill is stuck in the Senate Finance Committee. It would not change Arizona’s state income tax.
The Arizona Bill: HB2636
• Rep. Mariana Sandoval and 14 other House Democrats introduced House Bill 2636 in January 2026. No Republicans signed on.
• Arizona’s income tax is a flat 2.5% today. The bill would keep 2.5% on the first $1 million of income and charge 8% on every dollar above $1 million.
• Here is what that means. Someone with $1.5 million in taxable income pays $37,500 in state income tax today. Under the bill, they would pay $65,000, which is $27,500 more. Someone earning $80,000 would see no change.
• The bill never got a committee vote and died when the session ended in June.
Arizona has Seen 8% Tax Rates in Democrat Proposals Before
• 2018, Invest in Ed: This ballot measure would have raised the top rate to 8% and 9% on high earners. It also would have quietly raised taxes on many middle-income families by stopping the yearly inflation adjustment to tax brackets. The Arizona Supreme Court took it off the ballot because the petition didn’t tell voters about that.
To see what you would have paid under the Democrat 2018 plan, use the income slider at Stop8.org.
• 2020, Prop 208: Voters approved an extra 3.5% tax on income over $250,000 (or $500,000 for couples), which pushed the top rate to 8%. Courts later struck it down for breaking the state’s school spending limit.
How a Tax Rate Actually Changes
A federal tax change has to pass Congress. An Arizona tax change has to pass both the state House and Senate, or go to voters as a ballot measure. Right now, neither bill has moved. HB2636 died in committee, and S.4083 is still sitting in committee.
Do Higher Taxes Make Things More Affordable?
Raising taxes does not make goods or services cheaper. A tax increase leaves the person who pays it with less money. That makes everything more expensive for them, not less. For business owners, it can be catastrophic, leading to job cuts and higher prices.
The Congressional Budget Office measures the effect of taxes as a reduction in after-tax income. Disposable income is income minus taxes. If taxes rise, disposable income falls.
Tax increase bills move money around. They take more from people above $1 million and let people further down keep more of their paycheck. The people who get the cut have more cash.
The people who pay the higher rate have less. Nothing gets cheaper.
Raising the tax rate also makes it less worthwhile to work more or grow a business. Over time, that can mean fewer jobs and higher prices, not lower ones.
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