For Immediate Release

Contact: Vaibhav Vijay, Vaibhav.Vijay@mail.house.gov
Kyla Gill, Kyla.Gill@mail.house.gov

Rep. Summer Lee Introduces Landmark Legislation for Working-Class Families The American Stability Act

 The Largest Wage Increase and Tax Cut in U.S. History

Washington, D.C. – Today, Rep. Summer Lee (D-PA) introduced the American Stability Act, a revolutionary piece of legislation aimed at reversing decades of economic inequality and delivering the largest wage increase and tax cut for working-class people in U.S. history. This bill boldly reimagines the federal wage and tax system, restoring fairness and ensuring every American can live with dignity.

“For far too long, working-class families have been left behind by a rigged system that rewards the ultra-wealthy and leaves the rest of us struggling to make ends meet,” said Rep. Summer Lee. “The American Stability Act changes that – it’s about putting power back where it belongs: in the hands of the people who build this country every single day. This bill isn’t just a policy; it’s a statement that we’re unafraid to fight for what’s right, no matter how long overdue it may be.”

John Driscoll, Patriotic Millionaire, Senior Advisor to Walgreens Boots Alliance and EQT, former CEO of CareCentrix and author of the forthcoming book Pay the People, said: “The United States today is facing destabilizing levels of inequality – we’ve got too many undertaxed billionaires and far too many overtaxed working Americans. The American Stability Act would change that, and finally ensure that working Americans are paid what they need to survive. This bill will move us towards a fair economy that’s not just better for workers, but for businesses as well. A fairer economy is a stronger economy, one where democracy has a chance to succeed and thrive. When I was CEO of Carecentrix, I made the decision to invest in our lower-wage workers by doubling their pay, which led to sustained business success. With the American Stability Act, we can do the same thing for America. It’s time to pay the people.”

Cosponsors: Lee (CA), Jackson (IL), Tlaib, Bush, Schakowsky, McCollum, Ramirez

Endorsements: Americans for Democratic Action, Center for Popular Democracy Action, Excessive Wealth Disorder Institute, Institute for Policy Studies Inequality Program, National Black Worker Center, NETWORK Lobby for Catholic Social Justice, One Fair Wage, Patriotic Millionaires, Progressive Democrats of America, Public Citizen, Responsible Wealth, Social Security Works, Strong Economy for All Coalition, Take on Wall Street, United for a Fair Economy, United for Respect.

Key Provisions of the American Stability Act:

Part 1: A Minimum Wage No Less Than a Livable Wage

• Immediately raises the minimum wage to $15/hour to ensure that no full-time worker lives in poverty.
• Eliminates the concept of “minimum wage” and transitions to a “stability wage,” which would be sufficient to cover basic living expenses such as housing, healthcare, transportation, and food.
• Adjusts the stability wage annually to reflect increases in the average wage, so economic productivity gains benefit all workers.
• Authorizes a two-year earned income disallowance to ease the benefit cliff for workers earning less than $15/hour before the wage increase.

Part 2: An Exemption from Income Tax for Basic Living Expenses

• Establishes a cost-of-living exemption from federal income taxes for incomes up to the stability wage. This provision is based on the principle that individuals should not be taxed on income needed to cover basic living expenses, similar to the original tax system where only the wealthiest paid taxes.

Part 3: Ensuring That All Working Americans Share in Our Increased Prosperity

• Bases tax bracket thresholds on multiples of the. stability wage rather than fixed dollar amounts, ensuring that as the economy grows and the average wage increases, our tax system automatically adjusts. 

Part 4: Unrigging The Tax Code for Top Income Brackets

• Imposes a 3% surtax on incomes over $1 million, with an additional 5% surtax on incomes over $15 million, restoring tax progressivity by shifting the tax burden to the wealthiest Americans.

Background:

The American Stability Act directly addresses the economic disparities that have grown over the past fifty years. Since the 1960s, the value of the minimum wage has eroded, and tax cuts have increasingly favored the wealthy, leading to record levels of income inequality. This bill is a comprehensive response to these challenges, designed to uplift millions of Americans and promote shared prosperity.