119-hr1833

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1833 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 1833

 To amend the Internal Revenue Code of 1986 to rename the standard 
 deduction the guaranteed deduction, and to add a bonus amount to the 
 guaranteed deduction for taxable years 2026 and 2027.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 March 4, 2025

 Ms. Malliotakis 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 rename the standard 
 deduction the guaranteed deduction, and to add a bonus amount to the 
 guaranteed deduction for taxable years 2026 and 2027.

 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 ``Working Families Tax Cut Act''.

SEC. 2. STANDARD DEDUCTION RENAMED GUARANTEED DEDUCTION.

    (a) In General.--

Section 63 of the Internal Revenue Code of 1986 is 
amended--

    (1) by striking ``standard deduction'' each place it 
 appears and inserting ``guaranteed deduction'', and

    (2) in subsection
            (c) --
        (A) in the heading, by striking ``Standard 
 Deduction'' and inserting ``Guaranteed Deduction'',
        (B) in the heading of paragraph

    (2) , by striking 
 ``standard deduction'' and inserting ``guaranteed 
 deduction'',
            (C) in the heading of paragraph

    (3) , by striking 
 ``standard deduction'' and inserting ``guaranteed 
 deduction'',
            (D) in the heading of paragraph

    (5) , by striking 
 ``standard deduction'' and inserting ``guaranteed 
 deduction'',
        (E) in the heading of paragraph

    (6) , by striking 
 ``standard deduction'' and inserting ``guaranteed 
 deduction'', and
        (F) in the heading of paragraph

    (7)
        (A) , by striking 
 ``standard deduction'' and inserting ``guaranteed 
 deduction''.

    (b) Conforming Amendments.--

    (1) Section 1

    (g)

    (4)
        (A) of such Code is amended by striking 
 ``standard deduction'' and inserting ``guaranteed deduction''.

    (2) Section 56

    (b)

    (1)
            (D) of such Code is amended--
        (A) in the heading, by striking ``Standard 
 deduction'' and inserting ``guaranteed deduction'', and
        (B) by striking ``standard deduction'' and 
 inserting ``guaranteed deduction''.

    (3) Section 861

    (b) of such Code is amended by striking 
 ``standard deduction'' and inserting ``guaranteed deduction''.

    (4) Section 862

    (b) of such Code is amended by striking 
 ``standard deduction'' and inserting ``guaranteed deduction''.

    (5) Section 1398
            (c) of such Code is amended--
        (A) in the heading, by striking ``Standard 
 Deduction'' and inserting ``Guaranteed Deduction'',
        (B) in the heading of paragraph

    (3) , by striking 
 ``standard deduction'' and inserting ``guaranteed 
 deduction'', and
            (C) by striking ``standard deduction'' and 
 inserting ``guaranteed deduction''.

    (6) Section 3402 of such Code is amended by striking 
 ``standard deduction'' each place it appears and inserting 
 ``guaranteed deduction''.

    (7) Section 6012 of such Code is amended by striking 
 ``standard deduction'' each place it appears and inserting 
 ``guaranteed deduction''.

    (8) Section 6013

    (b)

    (3)
        (A) of such Code is amended by 
 striking ``standard deduction'' and inserting ``guaranteed 
 deduction''.

    (9) Section 6014

    (b)

    (4) of such Code is amended by striking 
 ``standard deduction'' and inserting ``guaranteed deduction''.

    (10) Section 6334 of such Code is amended by striking 
 ``standard deduction'' each place it appears and inserting 
 ``guaranteed deduction''.
            (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2025.

SEC. 3. BONUS GUARANTEED DEDUCTION FOR 2026 AND 2027.

    (a) In General.--

Section 63
            (c) of the Internal Revenue Code of 1986 
(as amended by 

section 2) is amended by adding at the end the following 
new paragraph:
 ``

    (8) Bonus guaranteed deduction for taxable years 2026 and 
 2027.--
 ``
        (A) In general.--In the case of a taxable year 
 beginning after December 31, 2025, and before January 
 1, 2028, the guaranteed deduction shall be increased by 
 the amount of the bonus guaranteed deduction.
 ``
        (B) Bonus guaranteed deduction.--For purposes of 
 this paragraph, the bonus guaranteed deduction is--
 ``
            (i) $4,000 in the case of a joint return 
 or a surviving spouse (as defined in 

section 2

    (a) ),
 ``
            (ii) $3,000 in the case of a head of 
 household, and
 ``
            (iii) $2,000 in any other case.
 ``
            (C) Adjustment for inflation.--In the case of a 
 taxable year beginning after 2026, each dollar amount 
 in subparagraph
        (B) shall be increased by an amount 
 equal to--
 ``
            (i) such dollar amount, multiplied by
 ``
            (ii) the cost-of-living adjustment 
 determined under 

section 1

    (f)

    (3) for the 
 calendar year in which the taxable year begins, 
 determined by substituting `2025' for `2016' in 
 subparagraph
        (A)
            (ii) thereof.
 If any increase under this subparagraph is not a 
 multiple of $50, such increase shall be rounded to the 
 next lowest multiple of $50.
 ``
            (D) Limitation on bonus guaranteed deduction 
 based on modified adjusted gross income.--
 ``
            (i) In general.--The bonus guaranteed 
 deduction determined under subparagraph
        (B) shall be reduced (but not below zero) by 5 
 percent of so much of the taxpayer's modified 
 adjusted gross income as exceeds the threshold 
 amount. For purposes of the preceding sentence, 
 the term `modified adjusted gross income' means 
 adjusted gross income increased by any amount 
 excluded from gross income under 

section 911, 
 931, or 933.
 ``
            (ii) Threshold amount.--For purposes of 
 clause
            (i) , the threshold amount is--
 ``
            (I) $400,000 in the case of a 
 joint return or a surviving spouse (as 
 defined in 

section 2

    (a) ),
 ``
            (II) $300,000 in the case of a 
 head of household, and
 ``
            (III) $200,000 in any other 
 case.''.

    (b) Effective Date.--The amendments made by this subsection shall 
apply to taxable years beginning after December 31, 2025.
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