U.S. Sen. Cory Booker (D-NJ) is proposing a bill that, if passed, would make the first $75,000 of a household income tax free.
If the bill — called the Keep Your Pay Act — passes, it would more than double the standard deduction for taxpayers.
Under Booker’s proposal, which was revealed Monday, the median American family would see their taxes cut by roughly 85%.
Single filers and heads of households would also receive proportional tax relief through the Keep Your Pay Act.
In a video advocating his bill, Booker said in part: “The tax system, we all know this, is rigged. It’s rigged against working people and all full of things to help people with a lot of money – whether it’s corporations or billionaires – avoid paying taxes. This happens because of the corruption down in washington that lets the wealthiest and most powerful write our tax code. So let’s un-rig it. Let’s make it simple and direct.”
Booker’s proposal would also include an expansion of tax credits, like the Child Tax Credit. The credit would increase to $3,600 per child aged 6 to 17 and $4,320 for children under 6 years old. The expansion would also include an additional $2,400 “baby bonus” the year a child is born to help the family with costs of a new child.
“No tax on the first $75,000 of household incomes,” Booker goes on to say in his video. “Your paychecks then get bigger, and by the way, my bill also has a bigger child tax credit too. Why? Because we should not stack the odds against families that want to have kids in America.”
Booker also unveiled a tax calculator tool to show the savings under his proposed legislation.
How would it all be paid for?
According to the senator, the proposal, if it passes, would be “fully paid for by closing unfair tax loopholes used by the ultra-wealthy and big corporations and requiring them to pay their fair share. This will include —raising the corporate tax rate, strengthening the corporate tax rules, increasing taxes on stock buybacks, tightening limits on executive compensation deductions, and other measures to return fairness to our tax system,” according to a press release.
“All of this paid for by simply making billionaires finally pay what they owe at the time that we’re seeing life get so much more expensive in America,” Booker said in his video.
Meanwhile, in a separate press release, Booker expanded on this bill.
“New Jerseyans are working harder than ever, but they’re struggling to get by because they’re facing out of control costs and an economy that is stacked against them—so we need big ideas to start making the American Dream possible for everyone again,” he said.
“No income tax on the first $75,000 families earn would be a game changer for working people. This tax cut would immediately put more money in your pocket every month to deal with the high price of everyday expenses, an unexpected emergency, or to plan for the future.”
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