Bill · S. 4042· Senate(119-S-4042)
Keep Your Pay Act
- Introduced
- 3/10/2026
- Last activity
- 3/10/2026 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Cory Booker
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The bill, cited as the Keep Your Pay Act, proposes changes to the Internal Revenue Code of 1986 concerning taxes and credits for individuals and families. It temporarily increases the standard deduction and raises income tax rates for the highest earners for taxable years from 2026 through 2035. Additionally, the legislation makes permanent certain earned income credit rules for individuals without qualifying children and extends these benefits to U.S. possessions. Workers are given the option to use prior year earned income when determining their credits. Finally, the bill establishes a refundable monthly child tax credit and monthly advance payments while terminating the previous annual child tax credit.
Yes· 3 of 16
Would households on low incomes be better off under this?+9
Significant expansions to the earned income tax credit and the monthly refundable child tax credit directly alleviate poverty for low-income households.
Would children be better off under this?+8
The creation of a refundable monthly child tax credit provides consistent and direct financial support for children's well-being.
Would middle-income households be better off under this?+8
The temporary increase in the standard deduction provides substantial tax relief to middle-class households.
The opposite· 3 of 4
Would high-income households be better off under this?-5
The bill increases income tax rates for the highest earners from 35% to 41% and from 37% to 43%.
Would people with substantial wealth be better off under this?-5
Higher top marginal income tax brackets directly impact high-net-worth individuals.
Would the very wealthiest people be better off under this?-5
The legislation raises income tax rates for top earners.
Who it would affect, and how
Potential Positive Impacts for People
-
Section 101 temporarily increases the standard deduction, which lowers the amount of income subject to tax for individuals and families during the applicable years.
-
Section 201 permanently extends earned income credit rules for individuals without qualifying children, lowers the minimum age for the credit, eliminates the maximum age, and increases credit percentages and amounts, providing ongoing financial support to workers.
-
Section 203 allows taxpayers to elect to use their prior year earned income if their current year earned income is lower, helping protect workers' credit amounts during income drops.
-
Section 204 establishes a refundable monthly child tax credit with monthly advance payments, delivering regular financial assistance directly to families with children.
Potential Negative Impacts for People
-
Section 102 increases income tax rates for the highest earners, shifting a heavier tax burden onto individuals falling into those top income brackets.
-
Section 204 introduces strict rules and potential tax increases or repayment obligations if advance child payments exceed a taxpayer's allowed credit due to changes in income, filing status, or eligibility errors, which could create unexpected financial strain.
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 Children+8Good For Middle Class Households+8Good For Young Adults+7Good For Middle Aged+6Good For Students+4Good For African Americans+3Good For Hispanic Americans+3Good For Women+3Good For Billionaires-5Good For High Income Households-5Good For High Net Worth Individuals-5Good For Ultra High Net Worth Individuals-5
- Social Issues And Justice
- Improves Childcare Affordability+8Improves Poverty Reduction+8Improves Racial Equity+3Reduces Homelessness+3
- Economy And Finance
- Reduces Middle Class Taxes+8Increases Wealthy Taxes+7Improves Economic Growth+4
- 3/10/2026
- Read twice and referred to the Committee on Finance.
- Introduced in Senate
6 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.
- 119-HR-2763: American Family Act
- 119-HR-2764: Tax Cut for Workers Act of 2025
- 119-HR-6634: To amend the Internal Revenue Code of 1986 to establish a refundable childhood education tax credit with monthly advance payments.
- 119-HR-6900: American Affordability Act of 2025
- 119-S-1372: Tax Cut for Workers Act of 2025
- 119-S-1393: American Family Act