Particle.news
Download on the App Store

Booker Unveils 'Keep Your Pay Act' To Make First $75,000 Tax-Free

Fiscal watchdogs warn the plan could carry a multitrillion-dollar price tag.

Overview

  • Sen. Cory Booker’s proposal would set the standard deduction at $75,000 for married couples, $37,500 for single filers, and $56,250 for heads of household.
  • The package pairs the larger deduction with bigger family benefits, including a Child Tax Credit of $4,320 for children under 6 and $3,600 for ages 6 to 17, plus a $2,400 baby bonus.
  • The bill would broaden the Earned Income Tax Credit by extending eligibility to workers ages 19–24 and 65+, and by tripling the credit for workers without children.
  • Booker says the plan would be fully paid for by higher taxes on corporations and high earners, citing a higher corporate rate, taxes on stock buybacks, tighter executive pay deductions, and stronger enforcement.
  • An online calculator launched with the rollout, Booker's office projects roughly an 85% cut in the median family’s federal income tax bill, analysts caution there is no official score yet and estimate costs could exceed $8 trillion over 10 years with slim odds in the GOP-led Congress.