Permanent Tax Cuts for American Families Act of 2025

2/14/2025, 4:23 AM

Permanent Tax Cuts for American Families Act of 2025

This bill makes permanent the increased standard tax deduction amounts enacted in 2017 as part of the Tax Cuts and Jobs Act.

Under current law, the standard tax deduction consists of a statutory base amount that is adjusted annually for inflation. For tax years 2018-2025, the Tax Cuts and Jobs Act increased the standard tax deduction statutory base amounts to $24,000 (from $6,000) for joint filers, $18,000 (from $4,400) for head-of-household filers, and $12,000 (from $3,000) for single filers, which almost doubled the inflation-adjusted standard tax deduction amount for most taxpayers.

Under the bill, the increased standard tax deduction statutory base amounts of $24,000 for joint filers, $18,000 for head-of-household filers, and $12,000 for single filers are made permanent. The bill also makes permanent the annual adjustments to such amounts for inflation.

Bill 119 HR 523, also known as the Standard Deduction Increase Act, aims to make a permanent change to the Internal Revenue Code of 1986 by increasing the standard deduction for taxpayers. The standard deduction is the amount of income that is not subject to taxation, and this bill seeks to raise that amount permanently.

The bill does not specify the exact amount by which the standard deduction will be increased, but it is intended to provide relief for taxpayers by allowing them to keep more of their income without having to pay taxes on it. This change would benefit individuals and families across the country by reducing their tax burden and potentially putting more money back in their pockets.

Supporters of the bill argue that increasing the standard deduction will simplify the tax code and make it easier for taxpayers to file their taxes. They also believe that it will help stimulate the economy by putting more money into the hands of consumers. Opponents of the bill may argue that increasing the standard deduction could lead to a decrease in tax revenue for the government, potentially impacting funding for important programs and services. They may also argue that the benefits of the increased standard deduction may disproportionately benefit higher-income individuals. Overall, Bill 119 HR 523 seeks to provide permanent relief for taxpayers by increasing the standard deduction, but the exact impact of this change remains to be seen.
Congress
119
Number
HR - 523
Introduced on
2025-01-16
# Amendments
0
Sponsors
+5
Cosponsors
+5

Variations and Revisions

1/16/2025
Text
PDF
XML

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

Permanent Tax Cuts for American Families Act of 2025

This bill makes permanent the increased standard tax deduction amounts enacted in 2017 as part of the Tax Cuts and Jobs Act.

Under current law, the standard tax deduction consists of a statutory base amount that is adjusted annually for inflation. For tax years 2018-2025, the Tax Cuts and Jobs Act increased the standard tax deduction statutory base amounts to $24,000 (from $6,000) for joint filers, $18,000 (from $4,400) for head-of-household filers, and $12,000 (from $3,000) for single filers, which almost doubled the inflation-adjusted standard tax deduction amount for most taxpayers.

Under the bill, the increased standard tax deduction statutory base amounts of $24,000 for joint filers, $18,000 for head-of-household filers, and $12,000 for single filers are made permanent. The bill also makes permanent the annual adjustments to such amounts for inflation.

Bill 119 HR 523, also known as the Standard Deduction Increase Act, aims to make a permanent change to the Internal Revenue Code of 1986 by increasing the standard deduction for taxpayers. The standard deduction is the amount of income that is not subject to taxation, and this bill seeks to raise that amount permanently.

The bill does not specify the exact amount by which the standard deduction will be increased, but it is intended to provide relief for taxpayers by allowing them to keep more of their income without having to pay taxes on it. This change would benefit individuals and families across the country by reducing their tax burden and potentially putting more money back in their pockets.

Supporters of the bill argue that increasing the standard deduction will simplify the tax code and make it easier for taxpayers to file their taxes. They also believe that it will help stimulate the economy by putting more money into the hands of consumers. Opponents of the bill may argue that increasing the standard deduction could lead to a decrease in tax revenue for the government, potentially impacting funding for important programs and services. They may also argue that the benefits of the increased standard deduction may disproportionately benefit higher-income individuals. Overall, Bill 119 HR 523 seeks to provide permanent relief for taxpayers by increasing the standard deduction, but the exact impact of this change remains to be seen.
Alternative Names
Official Title as IntroducedTo amend the Internal Revenue Code of 1986 to permanently increase the standard deduction.

Comments

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Ways and Means

Recent Activity

Latest Summary4/9/2025

Permanent Tax Cuts for American Families Act of 2025

This bill makes permanent the increased standard tax deduction amounts enacted in 2017 as part of the Tax Cuts and Jobs Act.

Under current law, the standard tax de...

Latest Action1/16/2025
Referred to the House Committee on Ways and Means.