Taxpayers would see higher standard deductions and new income tax rates.
This bill, called the Middle Class Tax Cut Act, would significantly change how individual income taxes are calculated. It would greatly increase the standard deduction for many taxpayers and introduce new, generally higher, tax rates across all income levels. It would also end special lower tax rates for capital gains, taxing them as regular income.
Currently, individual income tax rates vary by filing status, and there are specific standard deduction amounts, such as $4,400 for certain individuals and $3,000 for others. Also, capital gains are taxed at reduced rates. If this bill passes, the standard deduction would significantly increase to $75,000 for some and $50,000 for others, but new, generally higher, income tax rates would apply to all filers, and capital gains would be taxed as regular income.
HR 7303 · 119th Congress · January 30, 2026 · AI Summary by gemini-2.5-flash · 9/10
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