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U.S. Sen. Cory Booker, D-N.J., on Monday unveiled a new tax proposal he says would give working families more breathing room by eliminating federal income taxes on the first $75,000 of income for many households while expanding key tax credits for parents and low-income workers. Booker Announces Keep Your Pay …
Booker announced the proposal, called the Keep Your Pay Act, during a roundtable discussion with New Jersey residents in Bloomfield, where he framed the plan as a way to help families struggling with rising everyday costs and what he described as an economy tilted in favor of the wealthy and large corporations.
According to Booker’s office, the centerpiece of the plan would raise the standard deduction to $75,000 for married couples filing jointly, making the first $75,000 of their income tax-free. The proposal would also provide proportional tax relief for single filers and heads of household, which Booker said would more than double the standard deduction for all taxpayers.
“The New Jerseyans I met with this morning were loud and clear: They’re working harder than ever, but struggling to get by because they’re facing out-of-control costs and an economy that is stacked against them,” Booker said in a statement released with the announcement. He argued that the measure would put more money directly into workers’ paychecks and help families better manage emergencies, monthly bills, and long-term planning.
Beyond the standard deduction increase, the legislation would expand the Child Tax Credit under the American Family Act. Booker’s office said the credit would rise to $3,600 per child ages 6 to 17 and $4,320 for children under 6, while also adding a $2,400 “baby bonus” in the year a child is born. The credit would also be made refundable, a change intended to ensure lower-income families can still receive the full benefit.
The proposal would also broaden the Earned Income Tax Credit through the Tax Cut for Workers Act by expanding eligibility to workers ages 19 to 24 and 65 and older, groups currently excluded from the full benefit, while tripling the value of the credit, according to the release.
Booker said the plan would be fully paid for by closing tax loopholes used by ultra-wealthy Americans and major corporations. His office said that would include raising the corporate tax rate, tightening corporate tax rules, increasing taxes on stock buybacks, and placing stronger limits on executive compensation deductions.
The proposal arrives as Booker and other Democrats continue pushing economic messaging centered on cost-of-living pressures, wages, and tax fairness. Whether the measure gains traction in Congress remains to be seen, but Booker is positioning the bill as a direct appeal to workers who feel squeezed by higher prices and stagnant financial security.
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