hold on there's just too much going on in Congress lmao...
Overhauls income tax brackets and increases standard deduction.
Rep. Shri Thanedar (D-MI), Ways and Means Committee.
Introduced, referred to House Ways and Means Committee.
The bill quadruples the standard deduction for single filers to $75,000 and for heads of household to $50,000, replacing all existing brackets with 25% through 70% rates. Long-term capital gains preferential rates are eliminated. It applies to 2026 tax returns onward. Sponsor Thanedar is a Michigan Democrat on the tax-writing Ways and Means Committee. The bill has not yet had a committee vote.
Introduced Jan 30, 2026
This bill is under review by a committee. The committee holds hearings, gathers testimony from experts and stakeholders, and may propose amendments. If the committee votes to advance it, the bill moves to the full chamber for debate and a vote.
The standard deduction increase from roughly $14,600 to $75,000 (single) means most filers won't benefit from mortgage interest or charitable deductions. Current brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%) are replaced with 25%, 30%, 40%, 50%, and 70%. Middle-income households likely see lower taxes, while top earners face a significant hike. Capital gains no longer enjoy special lower rates, so selling stocks could cost more in tax.
Supporters Say
Simplifies the code and cuts taxes for most families by raising the standard deduction and creating a flat 25% rate on first $200K.
Critics Say
Punishes success with top rates near 70% and eliminates capital gains preferences, discouraging investment.
Supporters note the bill boosts after-tax income for the vast majority while making the wealthy pay more. Critics counter that high marginal rates and capital gains taxation reduce economic growth and could lead to capital flight. Some moderate Democrats may worry about the repeal of the capital gains differential.