NBC News takes a closer look at a political trend: Tax cuts, long a Republican calling card, are suddenly the new thing in Democratic politics. From Washington to Sacramento, high-profile Democrats are pitching proposals:
- Sens. Cory Booker and Chris Van Hollen are touting federal exemptions on earnings up to $75,000 and $92,000 for couples, respectively—ideas that also happen to raise their profiles ahead of 2028.
- In California's governor's race, Katie Porter wants to scrap state income taxes for families making up to $100,000.
- In Georgia, gubernatorial hopeful Keisha Lance Bottoms is campaigning on no state income tax for teachers.
- In Washington, DC, mayoral candidate Kenyan McDuffie is warning against "tax hikes dressed up as hope," drawing a contrast with New York City Mayor Zohran Mamdani.
The backlash inside the party is sharp. The proposals "are triggering what some are describing as the biggest policy battle on the left in years," per Axios. Policy hands from the center to the left warn Democrats can't promise Nordic-style social programs while carving out big chunks of the tax base. "There's only so much revenue you can get out of corporations and billionaires," says Zach Moller of Third Way, who predicts a looming "math problem" for Democrats.
Progressive critics say the party is drifting toward Ronald Reagan's view of taxes as punishment, eroding its traditional argument that everyone chips in for shared goals. Rep. Ro Khanna argues Democrats should explicitly defend taxes as part of a patriotic duty to fund health care, education, and child care. Van Hollen counters critics by arguing that his plan still fits a liberal agenda—especially paired with a wealth tax on billionaires—and Booker frames the proposals as the kind of "big economic ideas" voters can instantly understand.
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