Lower Your Taxes Act

Expanded Earned Income Tax Credit: The bill increases credit percentages and increases earned income and phaseout amounts, which provides more support to eligible workers (Section 3).

Monthly Child Tax Credit: The Act establishes a monthly specified child allowance, providing $300 for children age s 6 and $350 for those under age 6 (Section 5).

Support for State Residents: The bill creates a program to make annual payments to individuals whose States have non-refundable earned income tax credits, treating them as refundable (Section 4).

Credit for Other Dependents: A new credit of $500 is provided for each specified dependent, subject to certain income limits (Section 24B).

Debt Reduction Goal: The bill expresses the sense of Congress that net revenue should be used to reduce the national debt and deficit (Section 2).

Higher Corporate Taxes: The bill increases the corporate income tax rate from 21 percent to 28 percent and increases the rate on the repurchase of corporate stock from 1 percent to 4 percent (Section 7).

Capital Gains Tax Changes: The bill implements specific capital gains rates for taxpayers with taxable income not exceeding $1,000,000 (Section 6).

Taxpayer Restrictions: Individuals who make fraudulent or reckless claims regarding the monthly child tax credit may face a disallowance period of up to 10 years (Section 24A(f)(1)).

Increased Corporate Alternative Minimum Tax: The bill increases the rate of the corporate alternative minimum tax for income exceeding $5,000,000,000 (Section 7).