The Senate is pushing a bill to exempt households with an annual household income of $75,000 or less from federal income taxes, and attention is focused on its passage.
Senator Cory Booker introduced the “Keep Your Pay Act,” a middle-class tax cut, on the 9th. The bill would exempt the first $75,000 of annual income from federal income tax for married couples filing jointly. The bill would expand the standard deduction from $32,200 to $75,000, further expanding the exemption. The bill also expands the standard deduction to $37,500 for single adults filing individually and to $56,250 for households filing as head of households.
Congressman Booker explained that visitors can easily estimate the savings that could be realized if the bill becomes a reality by visiting his website (booker.senate.gov/tax-calculator). “It’s a simple idea: eliminate taxes on the first $75,000 of a household’s income,” he said. “We need a dramatic change to make the American Dream accessible to everyone once again.
The money needed to eliminate the income tax exemption can be more than offset by measures like curbing corporate tax evasion and raising taxes on the wealthy and corporations.