H.R. 2927: All-Americans Tax Relief Act of 2025

The "All-Americans Tax Relief Act of 2025" seeks to introduce several changes to the Internal Revenue Code in order to provide more financial relief to individuals and families. The main components of the bill include:

Expansion of Tax Credits

The bill proposes to expand the earned income tax credit and the child tax credit. This would mean that eligible low- to moderate-income working individuals and families could receive larger tax refunds, providing them with additional financial support. The specifics of these expansions would aim to increase the amounts refundable under these credits.

Deductions for Daycare and Commuting Expenses

New deductions would be introduced for daycare expenses and commuting costs. This means that individuals would be able to deduct certain amounts they spend on childcare and travel to work from their taxable income, potentially lowering their overall tax burdens.

Increase in Capital Gains Tax Rate

The bill would implement an increase in the capital gains tax rate. This tax applies to the profit from the sale of assets or investments, such as stocks and real estate. The proposed change may affect individuals with significant investment income, as they would have to pay a higher percentage on their capital gains.

Effective Dates

Most of the changes proposed by the bill would take effect after the year 2026, giving individuals and families time to prepare for the new regulations and for the federal and state tax systems to adjust accordingly.

Impact Overview

Overall, the "All-Americans Tax Relief Act of 2025" aims to enhance financial support for families and individuals through expanded tax credits and deductions while potentially increasing the tax burden on those who earn income from capital gains.

Relevant Companies

None found.