Lower Your Taxes Act

Key Points

• The bill creates a new monthly child tax credit of $300 per child aged 6-17 and $350 per child under 6, paid out automatically each month. The IRS would set up an online portal for families to manage their payments and update life changes like a new baby or income shift.
• The Earned Income Tax Credit would roughly double for most workers. Credit percentages jump dramatically (for example, from 34% to 68% for families with one child) and the earned income thresholds rise sharply (from $6,330 to $19,000 for one child). The minimum age drops from 25 to 18.
• To fund these credits, the corporate income tax rate rises from 21% to 28%, the stock buyback tax goes from 1% to 4%, and the corporate alternative minimum tax adds a 25% bracket for companies with over $5 billion in income.
• Taxpayers earning over $1 million per year would lose access to the lower capital gains tax rates, meaning their investment profits would be taxed at the same rates as regular income.
• The bill expresses that any extra revenue should go toward reducing the national deficit and debt. Nearly all provisions take effect for tax years starting after December 31, 2025.
• The Treasury would proactively notify people who may be eligible for the EITC but did not claim it, and a new federal program would effectively make certain state non-refundable earned income credits refundable by issuing federal payments to cover the difference.