Section 1 Short title
This Act may be cited as the “Middle Class Tax Cut Act”.
Middle Class Tax Cut Act
A BILL
To amend the Internal Revenue Code of 1986 to reform the individual income tax rates.
Sec. 2 Increased standard deduction
in subparagraph (B), by striking “$4,400” and inserting “$75,000”, and
in subparagraph (C), by striking “$3,000” and inserting “$50,000”.
Conforming amendments— Section 63(c)(4) of such Code is amended—
by inserting “(2026 in the case of the dollar amounts contained in subparagraph (B) or (C) of paragraph (2))” after “1988”, and
in subparagraph (B)—
in clause (i)—
by striking “paragraph (2)(B), (2)(C), or (5)(A)” and inserting “paragraph (5)(A)”, and
by striking “and” at the end,
in clause (ii), by striking the period at the end and inserting “, and”, and
by adding at the end the following new clause:
“(i) “calendar year 2025” in the case of the dollar amounts contained in subparagraph (B) or (C) of paragraph (2).”
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2025.
Sec. 3 Individual income tax rate reform
Joint returns and surviving spouses— Section 1(a) of the Internal Revenue Code of 1986 is amended by striking the table contained therein and inserting the following:
Heads of households— Section 1(b) of such Code is amended by striking the table contained therein and inserting the following:
Other individuals— Section 1 of such Code is amended by striking subsections (c) and (d) and inserting the following new subsection:
“(d) Other individuals—There is hereby imposed on the taxable income of every individual (other than an individual subject to tax under subsection (a) or (b)) a tax determined in accordance with the following table:”
Estates and trusts— Section 1(e) of such Code is amended by striking the table contained therein and inserting the following new table:
Repeal of reduced rates of tax on capital gains— Section 1 of such Code is amended by striking subsection (h).
Conforming amendments—
Section 1(f) of such Code is amended—
in the heading, by striking “Phaseout of marriage penalty in 15-percent bracket”,
in paragraph (1)—
by striking “1993” and inserting “2026”
by striking “(c), ”,
in paragraph (2)—
by striking “(c),”, and
by amending subparagraph (A) to read as follows:
“(A) by increasing the minimum and maximum dollar amounts for each bracket for which a tax is imposed under such table by the cost-of-living adjustment for such calendar year, determined by substituting “2026” for “2016” in paragraph (3)(A)(ii),”
in paragraph (7)(B)—
in the heading, by striking “married individuals filing separately” and inserting “certain individuals”, and
by striking “married individual filing a separate return” and inserting “any individual subject to tax under subsection (d)”, and
by striking paragraph (8).
Section 1 of such Code is amended by striking subsections (i) and (j).
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2025.