Group of Senate Republicans introduce middle-class tax relief bill

A group of Senate Republicans introduced legislation that seeks to provide tax relief and protections for middle-class Americans.

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The Middle-Class Savings and Investment Act would exclude a reasonable amount of interest income from being subject to tax — $600 for married couples and $300 for individuals. It would also more than double the size of the zero percent (lowest) tax bracket for long-term capital gains and qualified dividends and index the income thresholds to inflation.

Further, the bill would eliminate the marriage penalty that exists in the current Net Investment Tax—which subjects some income to an additional 3.8 percent tax—and index its income threshold to inflation. In addition, it would increase the maximum ‘savers credit’ an individual may receive for contributing to qualified retirement accounts and expanding the availability of this credit to more taxpayers.

“The reckless policies of the Biden administration have led to 40-year high inflation that is eating away at the savings of middle-class families, retirees, ranchers, and farmers. Historically high gas prices, food prices, and housing costs are emptying the wallets of people in Wyoming and across the country. The Middle-Class Savings and Investment Act helps Americans combat inflation by keeping Uncle Sam out of their pockets,” said U.S. Sen. John Barrasso (R-WY), one of the bill’s sponsors.

It was also sponsored by U.S. Sens. Chuck Grassley (R-IA), Steve Daines (R-MT), and James Lankford (R-OK).

“The reckless spending, backwards energy policy, and overall economic mismanagement of this administration has led to 40-year high inflation. Unlike other plans, like gas tax rebates or increased taxes on businesses, our legislation will not further fan the fires of inflation,” Grassley said. “Middle-class families, retirees, small businesses, and farmers have watched as their savings erode in value while still facing taxes on gains that may not even keep pace with inflation. This creates a perverse incentive to spend now rather than save, further fueling inflation. Our bill will ensure that those hurting most from inflation aren’t further burdened by those taxes.”