U.S. Senator Cory Booker has introduced the Keep Your Pay Act as of March 2026. The proposed legislation aims to restructure the federal tax system to benefit working- and middle-class Americans by eliminating federal income tax on the first $75,000 of earnings for households filing jointly, with similar relief extended to single filers.
Aims of the Keep Your Pay Act
The bill proposes doubling the standard deduction as a means to reduce the tax burden for an estimated 85% of Americans. Senator Booker stated, “No income tax on the first $75,000 families earn would be a game changer for working people.” He further explained that the tax cut would provide more money each month for expenses, emergencies, and future planning.
Beyond the elimination of income tax on the first $75,000 earned, the bill includes provisions to expand the Child Tax Credit to $3,600 per child aged 6 to 17 and $4,320 for children under 6 years old. The Earned Income Tax Credit would also be tripled under the proposal.
Concerns About the Tax System
Senator Booker has publicly stated his belief that the current tax system is “rigged,” favoring wealthy individuals and corporations. He argues that corruption in Washington allows the wealthiest to influence tax code in their favor, and that his bill seeks to address this imbalance.
The bill’s success will depend on its passage through the Senate. If enacted, the Keep Your Pay Act could significantly alter the financial landscape for millions of American families. A possible next step would be debate and potential amendments to the bill within the Senate.
Frequently Asked Questions
What is the primary goal of the Keep Your Pay Act?
The primary goal of the Keep Your Pay Act is to eliminate federal income tax on the first $75,000 of earnings for households filing jointly and to provide similar relief for single filers.
How would the bill impact the Child Tax Credit?
The bill proposes expanding the Child Tax Credit to $3,600 per child aged 6 to 17 and $4,320 for children under 6 years old.
What does Senator Booker say about the current tax system?
Senator Booker has stated that the tax system is “rigged” against working people and favors those with significant wealth and corporations.
As lawmakers consider changes to the tax code, how might these proposals affect your household’s financial planning?
