118 HR 3936 IH: Tax Cuts for Working Families Act
U.S. House of Representatives
2023-06-09
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
I
118th CONGRESS
1st Session
H. R. 3936
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.
1.

Short title
This Act may be cited as the “Tax Cuts for Working Families Act”.
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.
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.