Bill · H.R. 7303· House(119-HR-7303)
Middle Class Tax Cut Act
- Introduced
- 1/30/2026
- Last activity
- 1/30/2026 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Shri Thanedar
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The "Middle Class Tax Cut Act" aims to reform the individual income tax rates by amending the Internal Revenue Code of 1986. The bill proposes a significant increase to the standard deduction amounts for certain taxpayers. It also introduces a new structure for individual income tax rates across various filing statuses, including joint returns, heads of households, and other individuals. Additionally, the bill modifies the tax rates for estates and trusts. Finally, the legislation includes the repeal of reduced rates of tax on capital gains.
Yes· 3 of 6
Does this cut taxes for middle-income families?+8
The bill significantly increases the standard deduction to $75,000 for certain taxpayers, which reduces taxable income for middle-income families.
Would middle-income households be better off under this?+8
The bill increases the standard deduction amounts for several filing statuses, lowering the tax burden for many middle-class families.
Does this raise taxes on the highest earners?+7
The bill introduces much higher marginal tax rates of up to 70% for high earners.
The opposite· 3 of 5
Would people with substantial wealth be better off under this?-9
The new tax structure imposes much higher rates on high earners and eliminates capital gains advantages.
Would billionaires be better off under this?-9
The bill implements highly progressive tax rates of 70% on very high levels of income.
Would high-income households be better off under this?-8
The bill increases marginal tax rates significantly for those earning over $200,000 and repeals capital gains tax preferences.
Who it would affect, and how
Potential Positive Impacts for People
- Increased Standard Deduction: Under Section 2, the bill increases the standard deduction amounts, specifically striking "$4,400" to insert "$75,000" and striking "$3,000" to insert "$50,000". This would increase the amount of income that is not subject to tax for these groups.
Potential Negative Impacts for People
-
New Individual Income Tax Rates: Section 3 introduces new tax rate tables for joint returns, heads of households, other individuals, and estates/trusts. For example, under Section 3(a), individuals with income over $2,000,000 would face a tax of "$850,000, plus 70% of the excess over $2,000,000."
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Repeal of Capital Gains Rates: Section 3(e) strikes subsection (h) of the Internal Revenue Code of 1986, which constitutes the "Repeal of Reduced Rates of Tax on Capital Gains."
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Reduces Middle Class Taxes+8Increases Wealthy Taxes+7Reduces Capital Gains Tax-6Improves Economic Growth-2
- Demographic And Interest Groups
- Good For Middle Class Households+8Good For Low Income Households+7Good For Retirees+4Good For Seniors+3Good For Billionaires-9Good For High Net Worth Individuals-9Good For High Income Households-8
- 1/30/2026
- Referred to the House Committee on Ways and Means.
- Introduced in House