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The CPU is getting close to maxing out on my 1 Core VDS running Debian at peak times with about 28 players, how much more could it handle if I upgraded to a 2 core?

If your server can take full advantage of two cores then it should be close to double, as far as CPU is concerned. If what you are running isn't multi-threaded, an extra core won't help much aside from offloading background tasks for the OS to the other core.

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TimeX

I'm pretty sure srcds can use one core for networking and the other for everything else, but I don't know if it would make a difference.

It can take advantage of multiple cores, yes. I'm not 100% sure if it will let you double the players since other considerations can come up on such large servers, but it should help a fair bit either way.

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TimeX

Source is lightly multithreaded, and an upgrade might help, though it's tough to say how much. You could also run more than one server with an upgraded config, of course.