HR 7303

0likes☆Favorite🔕SubscribeShare

Introduced ↻ Update bill dataRe-checks Congress.gov for new actions and updates the bill's status, and fills in any sponsors, committees, or related bills that are missing. It does not re-pull sponsors/cosponsors/committees/related — those rarely change — and it skips all work if nothing has changed upstream, so it's cheap to click. Contact your reps Urge the sponsor

IN THE HOUSE OF REPRESENTATIVES

January 30, 2026

Mr. Thanedar introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to reform the individual income tax rates.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the “Middle Class Tax Cut Act”.

SEC. 2. INCREASED STANDARD DEDUCTION.

(a) In General.—Section 63(c)(2) of the Internal Revenue Code of 1986 is amended—

(1) in subparagraph (B), by striking “$4,400” and inserting “$75,000”, and

(2) in subparagraph (C), by striking “$3,000” and inserting “$50,000”.

(b) Conforming Amendments.—Section 63(c)(4) of such Code is amended—

(1) by inserting “(2026 in the case of the dollar amounts contained in subparagraph (B) or (C) of paragraph (2))” after “1988”, and

(2) in subparagraph (B)—

(A) in clause (i)—

(i) by striking “paragraph (2)(B), (2)(C), or (5)(A)” and inserting “paragraph (5)(A)”, and

(ii) by striking “and” at the end,

(B) in clause (ii), by striking the period at the end and inserting “, and”, and

(C) 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).”.

(c) 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.

(a) 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:

“If taxable income is: The tax is: Not over $200,000.............. 25% of taxable income. Over $200,000 but not over $400,000. $50,000, plus 30% of the excess over $200,000. Over $400,000 but not over $1,000,000. $110,000, plus 40% of the excess over $400,000. Over $1,000,000 but not over $2,000,000. $350,000, plus 50% of the excess over $1,000,000. Over $2,000,000................ $850,000, plus 70% of the excess over $2,000,000.”.

(b) Heads of Households.—Section 1(b) of such Code is amended by striking the table contained therein and inserting the following:

“If taxable income is: The tax is: Not over $150,000.............. 25% of taxable income. Over $150,000 but not over $300,000. $37,500, plus 30% of the excess over $150,000. Over $300,000 but not over $750,000. $82,500, plus 40% of the excess over $300,000. Over $750,000 but not over $1,500,000. $262,500, plus 50% of the excess over $750,000. Over $1,500,000................ $637,500, plus 70% of the excess over $1,500,000.”.

(c) 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:

“If taxable income is: The tax is: Not over $100,000.............. 25% of taxable income. Over $100,000 but not over $200,000. $25,000, plus 30% of the excess over $100,000. Over $200,000 but not over $500,000. $55,000, plus 40% of the excess over $200,000. Over $500,000 but not over $1,000,000. $175,000, plus 50% of the excess over $500,000. Over $1,000,000................ $425,000, plus 70% of the excess over $1,000,000.”.

(d) Estates and Trusts.—Section 1(e) of such Code is amended by striking the table contained therein and inserting the following new table:

“If taxable income is: The tax is: Not over $3,000................ 25% of taxable income. Over $3,000 but not over $11,000. $750, plus 30% of the excess over $3,000. Over $11,000 but not over $15,000. $3,150, plus 40% of the excess over $11,000. Over $15,000 but not over $20,000. $4,750, plus 50% of the excess over $15,000. Over $20,000................... $7,250, plus 70% of the excess over $20,000.”.

(e) Repeal of Reduced Rates of Tax on Capital Gains.—Section 1 of such Code is amended by striking subsection (h).

(f) Conforming Amendments.—

(1) Section 1(f) of such Code is amended—

(A) in the heading, by striking “Phaseout of Marriage Penalty in 15-percent Bracket”,

(B) in paragraph (1)—

(i) by striking “1993” and inserting “2026”

(ii) by striking “(c),”,

(C) in paragraph (2)—

(i) by striking “(c),”, and

(ii) 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),”,

(D) in paragraph (7)(B)—

(i) in the heading, by striking “married individuals filing separately” and inserting “certain individuals”, and

(ii) by striking “married individual filing a separate return” and inserting “any individual subject to tax under subsection

(d)”, and

(E) by striking paragraph (8).

(2) Section 1 of such Code is amended by striking subsections (i) and (j).

(g) Effective Date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2025. <all>