Federal Tax Policy

Sen. Cory Booker, D-N.J., has introduced the Keep Your Pay Act, a tax proposal that would effectively eliminate federal income tax on the first $75,000 of income for most households by raising the standard deduction to that level for joint filers, with proportional amounts for single and head-of-household taxpayers. Booker says the plan would cut federal income tax liability for the median American family by roughly 85%, and pairs that with major expansions of the Child Tax Credit — up to $3,600 per child ages 6–17, $4,320 under age 6, plus a $2,400 'baby bonus' in the year of birth — and a tripling and broadening of the Earned Income Tax Credit, including for young and older workers without kids at home. To cover the cost, the bill would raise the corporate tax rate, boost taxes on stock buybacks, tighten limits on executive pay deductions, and ramp up enforcement aimed at large firms and wealthy individuals, with Booker framing this as 'unrigging' the tax system so corporations and the rich "finally start paying their fair share." The rollout, backed by an online calculator to show estimated household savings, comes as Booker faces a 2026 reelection campaign and is floated as a potential 2028 presidential contender, positioning him to claim the populist tax-cut lane from the left while Republicans tout their own tax plans. Early online reaction is sharply polarized, with supporters highlighting relief for working families squeezed by high living costs and critics questioning the fiscal math and warning the corporate hikes could deter investment or ultimately be passed on to consumers.