0
Permanent Tax Cuts for American Families Act of 2025
2/14/2025, 4:23 AM
Summary of Bill HR 523
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.
Congressional Summary of HR 523
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.
