This bill would lower federal income taxes for low- and middle-income Americans. Starting in 2026, single filers would not pay federal income taxes on their first $46,000 of income, joint filers would not pay taxes on their first $92,000 of income, and heads of household would not pay taxes on their first $64,400 of income. These amounts are adjusted each year to match increases in the cost of living. Only income above these amounts would be taxed, and for qualifying individuals, the tax rate would be capped at 25.5%. To offset these tax cuts, the bill would add surcharges on incomes over $1 million, with even higher rates for those earning above $2 million and $5 million, shifting more of the tax burden to the highest earners.
