Bill · H.R. 2764· House(119-HR-2764)
Tax Cut for Workers Act of 2025
- Introduced
- 4/9/2025
- Last activity
- 4/9/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Dwight Evans
- Cosponsors
- - 18 - 0
- Introduced
- In Committee
What this bill would do
This bill, known as the "Tax Cut for Workers Act of 2025," aims to expand and make permanent certain changes to the earned income credit. It lowers the minimum age required to receive the credit for certain individuals, including students and former foster or homeless youth. The legislation also removes the maximum age limit for the credit. Additionally, it increases credit and phaseout percentages, as well as earned income and phaseout amounts. The bill includes provisions for inflation adjustments and extends the application of the credit to certain U.S. possessions. Finally, it allows taxpayers to elect to use their prior year's earned income to determine their credit.
Yes· 3 of 15
Would households on low incomes be better off under this?+9
The bill significantly increases the income thresholds and credit amounts for low-income taxpayers.
Is this likely to lift people out of poverty?+8
The expansion of the earned income credit is a direct mechanism for lifting low-income individuals out of poverty.
Would people in their twenties and thirties be better off under this?+7
The lower minimum age requirements significantly benefit students and former foster youth.
The opposite
Does this reduce what the federal government owes?-2
Expanding tax credits and increasing benefit amounts typically increases federal spending and may increase the deficit.
Does this reduce what the federal government spends?-2
Increasing the scope and amount of the earned income credit increases government outlays.
Who it would affect, and how
Potential Positive Impacts for People
- Lowering age requirements for the credit: The bill decreases the minimum age for certain groups, such as setting the age at 18 for qualified former foster youth or qualified homeless youth, and age 24 for students (Sec. 2(a)).
- Removing age limits: The legislation eliminates the maximum age of 65 for receiving the credit (Sec. 2(b)).
- Increasing credit amounts: The bill increases credit and phaseout percentages from 7.65 to 15.3 (Sec. 2(c)).
- Increasing income thresholds: The bill increases the earned income and phaseout amounts (Sec. 2(d)).
- Inflation adjustments: The bill implements adjustments for various dollar amounts based on inflation (Sec. 2(e)).
- Expanding coverage to U.S. possessions: The bill makes the application of the credit permanent for Puerto Rico and other possessions (Sec. 3).
- Flexibility for taxpayers: Taxpayers whose income has decreased may elect to use their prior year's earned income to determine their credit (Sec. 4(a)).
Potential Negative Impacts for People
- No negative impacts or burdens are explicitly stated in the provided text.
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 Low Income Households+9Good For Students+7Good For Young Adults+7Good For Seniors+6Good For Retirees+5Good For African Americans+3Good For Hispanic Americans+3Good For Middle Class Households+3
- Social Issues And Justice
- Improves Poverty Reduction+8Reduces Homelessness+4Improves Racial Equity+3
- Education And Technology
- Improves College Affordability+5
- Economy And Finance
- Reduces Middle Class Taxes+5Improves Economic Growth+3Reduces Government Spending-2Reduces National Debt-2
- Governance And Ideology
- Increases Federal Power+1
- 4/9/2025
- Referred to the House Committee on Ways and Means.
- 18 Cosponsors added.
- Introduced in House
3 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Yassamin AnsariDemocrat · Arizona
Jasmine CrockettDemocrat · Texas
Rosa DeLauroDemocrat · Connecticut
Valerie FousheeDemocrat · North Carolina
Steven HorsfordDemocrat · Nevada
Ro KhannaDemocrat · California
James McGovernDemocrat · Massachusetts
Jerrold NadlerDemocrat · New York
Eleanor NortonDemocrat · District of Columbia
Alexandria Ocasio-CortezDemocrat · New York
Delia RamirezDemocrat · Illinois
Linda SánchezDemocrat · California
Terri SewellDemocrat · Alabama
Mary Gay ScanlonDemocrat · Pennsylvania
Lateefah SimonDemocrat · California
Dina TitusDemocrat · Nevada
Rashida TlaibDemocrat · Michigan
Shri ThanedarDemocrat · Michigan