US EditionResidents could pay no federal tax on first $75K under new proposal
The Keep Your Pay Act would exempt the first $75,000 of income from federal tax for married couples, reducing tax on the median family by 85%, funded by higher taxes on wealthy and corporations.
- On Monday, Sen. Cory Booker, D-N.J., unveiled the Keep Your Pay Act and will introduce it Tuesday, doubling the standard deduction to $75,000 for couples and $37,500 for individuals.
- Presented as a Democratic policy idea, Booker said it helps working families and could shape the 2028 agenda, with the plan to eliminate income tax on the first $75,000 families earn.
- The policy includes expanding the Child Tax Credit to $3,600 for ages 6–17, $4,320 for children under 6, and a $2,400 baby bonus, fully refundable, with the EITC tripled and eligibility expanded.
- With no congressional appetite for a tax rewrite, Booker’s proposal faces uncertain prospects in a Senate controlled by 53 Republicans, and his seat is rated safe by Cook Political Report.
- Tax analysts caution the deduction boost favors wealthier couples, Booker says it’s paid for by taxing the wealthy and corporations, but critics note the bill lacks detailed offsets.
27 Articles
27 Articles
Sen. Cory Booker's new bill could make your first $75,000 of income tax free
U.S. Sen. Cory Booker (D-NJ) is proposing a bill that, if passed, would make the first $75,000 of a household income tax free. If the bill — called the Keep Your Pay Act — passes, it would more than double the standard deduction for taxpayers. Under Booker’s proposal, which was revealed Monday, the median American family would see their taxes...
Cory Booker Unveils ‘Keep Your Pay Act’ To Make First $75K Of Income Tax-Free
Source: Tom Williams / Getty – Sen. Cory Booker, D-N.J., talks with reporters outside the U.S. Capitol on March 5, 2026. New Jersey Senator Cory Booker has announced a new tax proposal called the Keep Your Pay Act, which he introduced in the Senate on March 9. If passed, the bill would be a game changer for Americans, helping citizens to keep their hard earned cash in their pockets come tax season. The Keep Your Pay Act argues for no federal in…
Sen. Cory Booker proposes ‘Keep Your Pay Act,’ eliminating federal income tax on first $75,000
Sen. Cory Booker, D-N.J., facing a re-election campaign in 2026, announced a new tax-cut bill, the Keep Your Pay Act, that would eliminate federal income taxes on the first $75,000 of income for most households and expand key tax credits for working families.
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