Sponsor
Cory Anthony Booker
Senator · D-NJ
Senator · D-NJ
Official title: Amend the Internal Revenue Code of 1986 to increase the standard deduction, and for other purposes.
Introduced March 10, 2026 by Cory Anthony Booker · Last progress March 10, 2026
The bill increases cash support and tax relief for low- and middle-income families (through larger standard deductions, expanded EITC, and monthly child credits with protections) while raising taxes on top earners and adding fiscal, administrative, privacy, and compliance trade-offs that could increase deficits and implementation risk.
Middle- and lower-income taxpayers will get a larger standard deduction (temporarily for 2026–2035), reducing taxable income and simplifying filing for many who don't itemize.
Low-income workers (including young adults and former foster or homeless youth) receive larger EITC amounts and expanded eligibility, increasing income support during work and transitions to independence.
Parents and families receive monthly advance child tax credit payments (with higher amounts for younger children) and stronger protections against garnishment, improving household cash flow and preserving funds for child needs.
High-income taxpayers face higher top marginal tax rates (raising the 35% and 37% brackets), increasing tax liability for top earners and potentially reducing investment or labor supply among them.
Expanding refundable credits and instituting monthly child payments substantially increases federal outlays, which could raise deficits or force offsets in spending or taxes affecting all taxpayers.
Implementing new eligibility mechanics, monthly advances, and territory payment rules will require significant IRS and state/territory administrative changes, raising compliance and operating costs and creating implementation risk.
Based on analysis of 8 sections of legislative text.
Temporarily raises standard deduction and top tax rates (2026–2035), expands and increases the EITC, and changes withholding, dependent rules, IRS procedures, and monthly child credit payments.
Temporarily raises the standard deduction and the top individual income tax rates for 2026–2035, and makes broad, mostly permanent changes that expand and increase the Earned Income Tax Credit (EITC) and related indexing rules. It also revises multiple individual-income-tax definitions and IRS procedures — including who qualifies as a dependent, withholding and confidentiality rules, Tax Court petition timing, preparer penalties, and a mechanism for monthly child tax credit payments during periods of “presumptive eligibility.” Overall the bill shifts tax benefits toward lower- and moderate-income workers (including younger workers and former foster/homeless youth) while increasing top marginal rates for higher earners during the temporary window.