Keep Your Pay Act

Key Points

• The bill more than doubles the standard deduction — the portion of income that isn't taxed — from $23,625 to $56,250 for married couples and from $15,750 to $37,500 for single filers. This temporary increase runs from 2026 through 2035, meaning most workers would see a significant reduction in their federal income tax.
• Families would receive monthly child tax credit payments of $300 per child aged 6-17 and $360 per month for children under 6. For the month a newborn arrives, the payment jumps to $2,400 (800% of $300), helping cover immediate costs. These payments phase out for higher earners starting at $150,000 for joint filers.
• To offset the cost, the bill raises tax rates on the highest earners. The top two individual income tax brackets increase from 35% to 41% and from 37% to 43%. Like the standard deduction change, these higher rates are temporary, lasting from 2026 through 2035.
• The Earned Income Tax Credit is permanently expanded for childless workers by lowering the minimum age to 19 (18 for former foster youth and homeless youth) and removing the upper age limit of 65. The credit percentage doubles from 7.65% to 15.3%, roughly doubling the maximum benefit for this group.
• The Treasury Department must build an online portal in multiple languages so families can sign up for monthly payments, report changes like a new baby or income shift, and resolve disputes when two people claim the same child. Automatic enrollment is provided for newborns and families already in certain government programs.
• The bill extends the Earned Income Tax Credit to U.S. territories including Puerto Rico, the U.S. Virgin Islands, Guam, and American Samoa on a permanent basis, removing the previous expiration at the end of 2025.

Votes

No votes have been recorded for this legislation yet.