Tax Cuts for Working Families Act

IB Union Calendar No. 101 118TH CONGRESS 1ST SESSION H. R. 3936 [Report No. 118–129] To amend the Internal Revenue Code of 1986 to rename the standard deduc- tion the guaranteed deduction, and to add a bonus amount to the guaranteed deduction for taxable years 2024 and 2025. IN THE HOUSE OF REPRESENTATIVES JUNE 9, 2023 Mr. SMITH of Missouri introduced the following bill; which was referred to the Committee on Ways and Means JUNE 30, 2023 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed [Strike out all after the enacting clause and insert the part printed in italic] [For text of introduced bill, see copy of bill as introduced on June 9, 2023] VerDate Sep 11 2014 23:26 Jun 30, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H3936.RH H3936 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 3936 RH 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 2024 and 2025. VerDate Sep 11 2014 23:26 Jun 30, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6652 E:\BILLS\H3936.RH H3936 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 3936 RH Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Tax Cuts for Working 4 Families Act’’. 5 SEC. 2. STANDARD DEDUCTION RENAMED GUARANTEED 6 DEDUCTION. 7 (a) IN GENERAL.—Section 63 of the Internal Revenue 8 Code of 1986 is amended— 9 (1) by striking ‘‘standard deduction’’ each place 10 it appears and inserting ‘‘guaranteed deduction’’, and 11 (2) in subsection (c)— 12 (A) in the heading, by striking ‘‘STANDARD 13 DEDUCTION’’ and inserting ‘‘GUARANTEED DE- 14 DUCTION’’, 15 (B) in the heading of paragraph (2), by 16 striking ‘‘STANDARD DEDUCTION’’ and inserting 17 ‘‘GUARANTEED DEDUCTION’’, 18 (C) in the heading of paragraph (3), by 19 striking ‘‘STANDARD DEDUCTION’’ and inserting 20 ‘‘GUARANTEED DEDUCTION’’, 21 (D) in the heading of paragraph (5), by 22 striking ‘‘STANDARD DEDUCTION’’ and inserting 23 ‘‘GUARANTEED DEDUCTION’’, 24 VerDate Sep 11 2014 23:26 Jun 30, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6203 E:\BILLS\H3936.RH H3936 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 3936 RH (E) in the heading of paragraph (6), by 1 striking ‘‘STANDARD DEDUCTION’’ and inserting 2 ‘‘GUARANTEED DEDUCTION’’, and 3 (F) in the heading of paragraph (7)(A), by 4 striking ‘‘STANDARD DEDUCTION’’ and inserting 5 ‘‘GUARANTEED DEDUCTION’’. 6 (b) CONFORMING AMENDMENTS.— 7 (1) Section 1(g)(4)(A) of such Code is amended 8 by striking ‘‘standard deduction’’ and inserting 9 ‘‘guaranteed deduction’’. 10 (2) Section 56(b)(1)(D) of such Code is amend- 11 ed— 12 (A) in the heading, by striking ‘‘STANDARD 13 DEDUCTION’’ and inserting ‘‘GUARANTEED DE- 14 DUCTION’’, and 15 (B) by striking ‘‘standard deduction’’ and 16 inserting ‘‘guaranteed deduction’’. 17 (3) Section 861(b) of such Code is amended by 18 striking ‘‘standard deduction’’ and inserting ‘‘guar- 19 anteed deduction’’. 20 (4) Section 862(b) of such Code is amended by 21 striking ‘‘standard deduction’’ and inserting ‘‘guar- 22 anteed deduction’’. 23 (5) Section 1398(c) of such Code is amended— 24 VerDate Sep 11 2014 23:26 Jun 30, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6203 E:\BILLS\H3936.RH H3936 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 3936 RH (A) in the heading, by striking ‘‘STANDARD 1 DEDUCTION’’ and inserting ‘‘GUARANTEED DE- 2 DUCTION’’, 3 (B) in the heading of paragraph (3), by 4 striking ‘‘STANDARD DEDUCTION’’ and inserting 5 ‘‘GUARANTEED DEDUCTION’’, and 6 (C) by striking ‘‘standard deduction’’ and 7 inserting ‘‘guaranteed deduction’’. 8 (6) Section 3402 of such Code is amended by 9 striking ‘‘standard deduction’’ each place it appears 10 and inserting ‘‘guaranteed deduction’’. 11 (7) Section 6012 of such Code is amended by 12 striking ‘‘standard deduction’’ each place it appears 13 and inserting ‘‘guaranteed deduction’’. 14 (8) Section 6013(b)(3)(A) of such Code is amend- 15 ed by striking ‘‘standard deduction’’ and inserting 16 ‘‘guaranteed deduction’’. 17 (9) Section 6014(b)(4) of such Code is amended 18 by striking ‘‘standard deduction’’ and inserting 19 ‘‘guaranteed deduction’’. 20 (10) Section 6334 of such Code is amended by 21 striking ‘‘standard deduction’’ each place it appears 22 and inserting ‘‘guaranteed deduction’’. 23 VerDate Sep 11 2014 23:26 Jun 30, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6203 E:\BILLS\H3936.RH H3936 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 3936 RH (c) EFFECTIVE DATE.—The amendments made by this 1 section shall apply to taxable years beginning after Decem- 2 ber 31, 2023. 3 SEC. 3. BONUS GUARANTEED DEDUCTION FOR 2024 AND 4 2025. 5 (a) IN GENERAL.—Section 63(c) of the Internal Rev- 6 enue Code of 1986 (as amended by section 2) is amended 7 by adding at the end the following new paragraph: 8 ‘‘(8) BONUS GUARANTEED DEDUCTION FOR TAX- 9 ABLE YEARS 2024 AND 2025.— 10 ‘‘(A) IN GENERAL.—In the case of a taxable 11 year beginning after December 31, 2023, and be- 12 fore January 1, 2026, the guaranteed deduction 13 shall be increased by the amount of the bonus 14 guaranteed deduction. 15 ‘‘(B) BONUS GUARANTEED DEDUCTION.— 16 For purposes of this paragraph, the bonus guar- 17 anteed deduction is— 18 ‘‘(i) twice the dollar amount in effect 19 under clause (iii) in the case of a joint re- 20 turn or a surviving spouse (as defined in 21 section 2(a)), 22 ‘‘(ii) $3,000 in the case of a head of 23 household, and 24 ‘‘(iii) $2,000 in any other case. 25 VerDate Sep 11 2014 23:26 Jun 30, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6203 E:\BILLS\H3936.RH H3936 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 3936 RH ‘‘(C) ADJUSTMENT FOR INFLATION.—In the 1 case of a taxable year beginning after 2024, the 2 dollar amounts in clauses (ii) and (iii) of sub- 3 paragraph (B) shall each be increased by an 4 amount equal to— 5 ‘‘(i) such dollar amount, multiplied by 6 ‘‘(ii) the cost-of-living adjustment de- 7 termined under section 1(f)(3) for the cal- 8 endar year in which the taxable year be- 9 gins, determined by substituting ‘2023’ for 10 ‘2016’ in subparagraph (A)(ii) thereof. 11 If any increase under this subparagraph is not 12 a multiple of $50, such increase shall be rounded 13 to the next lowest multiple of $50. 14 ‘‘(D) LIMITATION ON BONUS GUARANTEED 15 DEDUCTION BASED ON MODIFIED ADJUSTED 16 GROSS INCOME.— 17 ‘‘(i) IN GENERAL.—The bonus guaran- 18 teed deduction determined under subpara- 19 graph (B) shall be reduced (but not below 20 zero) by 5 percent of so much of the tax- 21 payer’s modified adjusted gross income as 22 exceeds the threshold amount. For purposes 23 of the preceding sentence, the term ‘modified 24 adjusted gross income’ means adjusted gross 25 VerDate Sep 11 2014 23:26 Jun 30, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6203 E:\BILLS\H3936.RH H3936 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 3936 RH income increased by any amount excluded 1 from gross income under section 911, 931, 2 or 933. 3 ‘‘(ii) THRESHOLD AMOUNT.—For pur- 4 poses of clause (i), the threshold amount 5 is— 6 ‘‘(I) $400,000 in the case of a 7 joint return or a surviving spouse (as 8 defined in section 2(a)), 9 ‘‘(II) $300,000 in the case of a 10 head of household, and 11 ‘‘(III) $200,000 in any other case. 12 ‘‘(E) BONUS GUARANTEED DEDUCTION NOT 13 ALLOWED TO DEPENDENTS.—In the case of any 14 individual with respect to whom paragraph (5) 15 applies for any taxable year, subparagraph (A) 16 shall not apply.’’. 17 (b) EFFECTIVE DATE.—The amendments made by this 18 section shall apply to taxable years beginning after Decem- 19 ber 31, 2023. 20 VerDate Sep 11 2014 23:26 Jun 30, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6203 E:\BILLS\H3936.RH H3936 kjohnson on DSK79L0C42PROD with BILLS VerDate Sep 11 2014 23:26 Jun 30, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6203 E:\BILLS\H3936.RH H3936 kjohnson on DSK79L0C42PROD with BILLS Union Calendar No. 101 118TH CONGRESS 1ST SESSION H. R. 3936 [Report No. 118–129] 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 2024 and 2025. JUNE 30, 2023 Reported with an amendment, committed to the Com- mittee of the Whole House on the State of the Union, and ordered to be printed VerDate Sep 11 2014 23:26 Jun 30, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6651 Sfmt 6651 E:\BILLS\H3936.RH H3936 kjohnson on DSK79L0C42PROD with BILLS