[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3936 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 3936

   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.


_______________________________________________________________________


                    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

_______________________________________________________________________

                                 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.

    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 ``Tax Cuts for Working Families 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, 2023.

SEC. 3. BONUS GUARANTEED DEDUCTION FOR 2024 AND 2025.

    (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 2024 and 
        2025.--
                    ``(A) In general.--In the case of a taxable year 
                beginning after December 31, 2023, and before January 
                1, 2026, 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 2024, 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 `2023' 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, 2023.
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