Overview
- Booker says he will introduce the bill Tuesday, setting the standard deduction at $75,000 for married couples, $37,500 for single filers, and $56,250 for heads of household, a shift expected to push more taxpayers to take the standard deduction.
- His office projects steep relief for middle-income families, estimating the median household’s federal income tax bill would drop by roughly 85%.
- The plan boosts family benefits by raising the child tax credit to $4,320 per child under 6 and $3,600 for ages 6–17, adds a $2,400 birth-year “baby bonus,” and makes the credit fully refundable.
- The proposal expands the Earned Income Tax Credit by tripling the value for workers without children and opening eligibility to workers ages 19–24 and 65 and older without children at home.
- Booker says the package would be fully paid for through higher taxes on wealthy individuals and large corporations, including a higher corporate rate, taxes on stock buybacks, tighter executive-compensation deductions, and stronger enforcement, though no official cost estimate exists and a Tax Foundation official warned the price could exceed $8 trillion over 10 years; he also launched an online calculator for households to gauge potential savings.