[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7303 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 7303
To amend the Internal Revenue Code of 1986 to reform the individual
income tax rates.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 30, 2026
Mr. Thanedar introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to reform the individual
income tax rates.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Middle Class Tax Cut Act''.
SEC. 2. INCREASED STANDARD DEDUCTION.
(a) In General.--Section 63(c)(2) of the Internal Revenue Code of
1986 is amended--
(1) in subparagraph (B), by striking ``$4,400'' and
inserting ``$75,000'', and
(2) in subparagraph (C), by striking ``$3,000'' and
inserting ``$50,000''.
(b) Conforming Amendments.--Section 63(c)(4) of such Code is
amended--
(1) by inserting ``(2026 in the case of the dollar amounts
contained in subparagraph (B) or (C) of paragraph (2))'' after
``1988'', and
(2) in subparagraph (B)--
(A) in clause (i)--
(i) by striking ``paragraph (2)(B), (2)(C),
or (5)(A)'' and inserting ``paragraph (5)(A)'',
and
(ii) by striking ``and'' at the end,
(B) in clause (ii), by striking the period at the
end and inserting ``, and'', and
(C) by adding at the end the following new clause:
``(i) `calendar year 2025' in the case of
the dollar amounts contained in subparagraph
(B) or (C) of paragraph (2).''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 3. INDIVIDUAL INCOME TAX RATE REFORM.
(a) Joint Returns and Surviving Spouses.--Section 1(a) of the
Internal Revenue Code of 1986 is amended by striking the table
contained therein and inserting the following:
``If taxable income is: The tax is:
Not over $200,000..............
25% of taxable income.
Over $200,000 but not over
$400,000.
$50,000, plus 30% of the excess
over $200,000.
Over $400,000 but not over
$1,000,000.
$110,000, plus 40% of the
excess over $400,000.
Over $1,000,000 but not over
$2,000,000.
$350,000, plus 50% of the
excess over $1,000,000.
Over $2,000,000................
$850,000, plus 70% of the
excess over
$2,000,000.''.
(b) Heads of Households.--Section 1(b) of such Code is amended by
striking the table contained therein and inserting the following:
``If taxable income is: The tax is:
Not over $150,000..............
25% of taxable income.
Over $150,000 but not over
$300,000.
$37,500, plus 30% of the excess
over $150,000.
Over $300,000 but not over
$750,000.
$82,500, plus 40% of the excess
over $300,000.
Over $750,000 but not over
$1,500,000.
$262,500, plus 50% of the
excess over $750,000.
Over $1,500,000................
$637,500, plus 70% of the
excess over
$1,500,000.''.
(c) Other Individuals.--Section 1 of such Code is amended by
striking subsections (c) and (d) and inserting the following new
subsection:
``(d) Other Individuals.--There is hereby imposed on the taxable
income of every individual (other than an individual subject to tax
under subsection (a) or (b)) a tax determined in accordance with the
following table:
``If taxable income is: The tax is:
Not over $100,000..............
25% of taxable income.
Over $100,000 but not over
$200,000.
$25,000, plus 30% of the excess
over $100,000.
Over $200,000 but not over
$500,000.
$55,000, plus 40% of the excess
over $200,000.
Over $500,000 but not over
$1,000,000.
$175,000, plus 50% of the
excess over $500,000.
Over $1,000,000................
$425,000, plus 70% of the
excess over
$1,000,000.''.
(d) Estates and Trusts.--Section 1(e) of such Code is amended by
striking the table contained therein and inserting the following new
table:
``If taxable income is: The tax is:
Not over $3,000................
25% of taxable income.
Over $3,000 but not over
$11,000.
$750, plus 30% of the excess
over $3,000.
Over $11,000 but not over
$15,000.
$3,150, plus 40% of the excess
over $11,000.
Over $15,000 but not over
$20,000.
$4,750, plus 50% of the excess
over $15,000.
Over $20,000...................
$7,250, plus 70% of the excess
over $20,000.''.
(e) Repeal of Reduced Rates of Tax on Capital Gains.--Section 1 of
such Code is amended by striking subsection (h).
(f) Conforming Amendments.--
(1) Section 1(f) of such Code is amended--
(A) in the heading, by striking ``Phaseout of
Marriage Penalty in 15-percent Bracket'',
(B) in paragraph (1)--
(i) by striking ``1993'' and inserting
``2026''
(ii) by striking ``(c),'',
(C) in paragraph (2)--
(i) by striking ``(c),'', and
(ii) by amending subparagraph (A) to read
as follows:
``(A) by increasing the minimum and maximum dollar
amounts for each bracket for which a tax is imposed
under such table by the cost-of-living adjustment for
such calendar year, determined by substituting `2026'
for `2016' in paragraph (3)(A)(ii),'',
(D) in paragraph (7)(B)--
(i) in the heading, by striking ``married
individuals filing separately'' and inserting
``certain individuals'', and
(ii) by striking ``married individual
filing a separate return'' and inserting ``any
individual subject to tax under subsection
(d)'', and
(E) by striking paragraph (8).
(2) Section 1 of such Code is amended by striking
subsections (i) and (j).
(g) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
<all>
Middle Class Tax Cut Act
#7303 | HR Congress #119
Policy Area: Taxation
Subjects:
Last Action: Referred to the House Committee on Ways and Means. (1/30/2026)
Bill Text Source: Congress.gov
Summary and Impacts
Original Text