Cory Booker Unveils ‘Keep Your Pay Act’
Cory Booker Unveils ‘Keep Your Pay Act’ To Make First $75K Of Income Tax-Free
New Jersey Senator Cory Booker has announced a new tax proposal called the Keep Your Pay Act, which he introduced in the Senate on March 9. If passed, the bill would be a game changer for Americans, helping citizens to keep their hard earned cash in their pockets come tax season.
The Keep Your Pay Act argues for no federal income tax for the first $75,000 in income.
According to a press release, at the centerpiece of the plan is a straightforward idea: the first $75,000 of income would be tax-free for households filing jointly, with proportional tax relief for single filers and heads of household. Booker’s proposal would more than double the standard deduction for taxpayers.
Under current guidelines from the Internal Revenue Service, the standard deduction for 2025 is $15,750 for single filers or those married filing separately, $31,500 for married couples filing jointly or a qualifying surviving spouse, and $23,625 for heads of household.
If Booker’s proposal were enacted, many married taxpayers would pay no federal income tax on the first $75,000 they earn. According to NBC News, individual (Single) filers would receive a standard deduction of $37,500 while head of household’s would receive a standard deduction of $56,250 under the legislation.
The Child Tax Credit would expand under the bill if passed.
The Keep Your Pay Act would also expand the Child Tax Credit through the American Family Act. Under the plan, the credit would increase to $3,600 per child ages 6 to 17 and $4,320 for children under six. It would also include a $2,400 “baby bonus” in the year a child is born to help families cover the high upfront costs of welcoming a newborn. The credit would be fully refundable so that families with lower incomes can still receive the full benefit.
It would also boost age eligibility for the Earned Income Tax Credit.
In addition, the plan would expand the Earned Income Tax Credit through the Tax Cut for Workers Act. The measure would extend eligibility to younger workers ages 19 to 24 and older workers 65 and above—groups that are currently excluded from receiving the full benefit—while also tripling the value of the credit to deliver additional relief to workers without children in the home.
Booker says the proposal would be fully paid for by closing tax loopholes used by wealthy individuals and large corporations and requiring them to pay a larger share. Measures could include raising the corporate tax rate, strengthening corporate tax rules, increasing taxes on stock buybacks, tightening limits on deductions for executive compensation, and addressing other tax avoidance strategies.
“The tax system is rigged, we all know this,” Booker told supporters in a video shared to his X account on March 9. “It’s rigged against working people and all full with things that help people with a lot of money—whether it’s corporations or billionaires—avoid paying taxes.”
Why is Cory Booker proposing this?
The plan is designed as a sweeping response to a range of economic concerns, including rising costs and wages that have struggled to keep pace with essentials such as housing and health care.
“You should keep more of your money,” Booker added in his video shared Tuesday.
SEE MORE:
Tax Refunds Could Be Bigger Than Usual This Year — Here’s What You Should Know
Cory Booker Unveils ‘Keep Your Pay Act’ To Make First $75K Of Income Tax-Free was originally published on newsone.com
