Congress·In Committee·H.R. 7303

House Democrats' Middle Class Tax Cut Act Would Raise Standard Deduction to $75K, Hike Taxes on Millionaires

Middle Class Tax Cut Act

Legislative Progress

House

Senate

President

Law

The bill would significantly raise the 'standard deduction,' which is the portion of your income that is not taxed. For married couples, this amount would jump to $75,000, and for single people, it would rise to $50,000 starting in 2026.
Income tax rates would be simplified into five new levels. The lowest rate would be 25% for income up to $200,000 for couples, while the highest rate would reach 70% for any income over $2 million.
A major change involves 'capital gains,' which is the profit made from selling things like stocks or property. Currently, these are often taxed at lower rates, but this bill would cancel those special breaks and tax that profit at the same rate as a regular paycheck.
The policy aims to provide a tax cut for middle-class families by letting them keep more of their initial earnings, while increasing the tax burden on the wealthiest Americans and investors.
If passed by Congress and signed into law, these changes would apply to the money people earn starting in the 2026 calendar year.

TaxesEconomy Finance

Who is affectedScoreImpactCertaintyScopeDurationSentiment

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

DomainScoreShort-termLong-termReversibilityConfidence

Score

Scores: -5 (harmful) to +5 (beneficial)Short-term: 0-2 yearsLong-term: 10-30 years

2 milestones2 actions

Jan 30, 2026House

Referred to the House Committee on Ways and Means.

Jan 30, 2026

Introduced in House

Document Type

Congressional Bill

Official Title

Middle Class Tax Cut Act

Bill NumberHR 7303

Congress119th Congress

ChamberHouse of Representatives

Latest ActionReferred to the House Committee on Ways and Means.

Congress.gov

Official legislative information

Analysis generated by AI. Always verify with official sources.