Bill · H.R. 1833· House(119-HR-1833)
Working Families Tax Cut Act
- Introduced
- 3/4/2025
- Last activity
- 3/4/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Nicole Malliotakis
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill, titled the ``Working Families Tax Cut Act'', aims to amend the Internal Revenue Code of 1986. It proposes to rename the "standard deduction" to the "guaranteed deduction" throughout the code. Additionally, the bill seeks to add a bonus amount to this deduction for the taxable years of 2026 and 2027. The bonus amounts vary based on filing status, such as joint returns or head of household. These changes are intended to take effect for taxable years beginning after December 31, 2025.
Yes· 3 of 4
Would middle-income households be better off under this?+5
The bill provides a specific bonus to the deduction that benefits middle-income earners.
Does this cut taxes for middle-income families?+5
The bill increases the deduction amount for various filing statuses, providing tax relief to many middle-income households.
Would households on low incomes be better off under this?+4
The increased deduction provides significant relief for households with incomes below the specified high-income thresholds.
The opposite
Does this reduce what the federal government spends?-3
Increasing the deduction amount reduces federal tax revenue, which effectively increases government spending on tax relief.
Would high-income households be better off under this?-2
The bill includes a provision that reduces the bonus deduction for households with high modified adjusted gross incomes.
Who it would affect, and how
Potential Positive Impacts for People
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Increased Deduction Amount: The bill adds a bonus to the deduction for taxable years 2026 and 2027, which provides more money for certain taxpayers. Under Section 3(a)(B), this includes $4,000 for joint returns or surviving spouses, $3,000 for heads of households, and $2,000 for other cases.
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Inflation Protection: For taxable years beginning after 2026, the bonus amounts are adjusted for inflation based on cost-of-living adjustments. This is detailed in Section 3(a)(C).
Potential Negative Impacts for People
-
Income-Based Reduction of Bonus: The bonus amount can be reduced if a taxpayer's income is too high. According to Section 3(a)(D)(i), the bonus is reduced by 5 percent of the taxpayer's modified adjusted gross income that exceeds specific threshold amounts.
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High Income Thresholds: The bonus reduction applies once income hits certain levels: $400,000 for joint returns or surviving spouses, $300,000 for heads of household, and $200,000 for other cases, as specified in Section 3(a)(D)(ii).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Middle Class Households+5Good For Low Income Households+4Good For High Income Households-2
- Social Issues And Justice
- Improves Poverty Reduction+3
- Economy And Finance
- Reduces Middle Class Taxes+5Reduces Government Spending-3
- 3/4/2025
- Referred to the House Committee on Ways and Means.
- Introduced in House