U.S. Senator Cory Booker (D-NJ) announced the “Keep Your Pay Act,” a proposal that would make the first $75,000 of income tax-free for households filing jointly while expanding tax credits for working families. The plan would more than double the standard deduction, resulting in the majority of taxpayers paying no federal income tax on the first $75,000 of earnings. Booker said the proposal would be funded by increasing taxes on corporations and high-income households and by closing tax loopholes used by large companies and wealthy individuals.
- The proposal would increase the standard deduction to $75,000 for married couples filing jointly, with proportional relief for single filers and heads of household.
- The plan would expand the Child Tax Credit to $3,600 per child ages 6–17 and $4,320 for children under six.
- A $2,400 “baby bonus” would be provided in the year a child is born.
- The Earned Income Tax Credit would expand eligibility to workers aged 19–24 and 65+ and triple the credit value.
- Booker said the median American family would see taxes reduced by roughly 85% under the proposal.
- The legislation proposes funding the tax changes by raising the corporate tax rate, increasing taxes on stock buybacks, tightening executive compensation deductions, and closing tax loopholes.
- A tax calculator has been launched on Booker’s website allowing individuals to estimate savings under the proposal.
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Editor’s Note: This is a developing story. This article may be updated as more details become available.
