Middle Class Savings Act

Middle Class Savings Act

This bill modifies the tax brackets that apply to taxes on capital gains. The bill aligns the thresholds with the brackets for the regular income tax rates enacted in P.L. 115-97 (commonly known as the Tax Cuts and Jobs Act).

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 589 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 589

To amend the Internal Revenue Code of 1986 to apply current income tax 
             bracket breakpoints to capital gains brackets.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 16, 2019

   Mr. Barr introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to apply current income tax 
             bracket breakpoints to capital gains brackets.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Middle Class Savings Act''.

SEC. 2. APPLICATION OF CURRENT INCOME TAX BRACKET BREAKPOINTS TO 
              CAPITAL GAINS BRACKETS.

    (a) In General.--Section 1(j)(5)(B) of the Internal Revenue Code of 
1986 is amended--
            (1) by striking ``$77,200'' in clause (i)(I) and inserting 
        ``$77,400'',
            (2) by striking ``$51,700'' in clause (i)(II) and inserting 
        ``$51,800'',
            (3) by striking ``$479,000'' in clause (ii)(I) and 
        inserting ``$600,000'',
            (4) by striking ``$452,400'' in clause (ii)(II) and 
        inserting ``$500,000'', and
            (5) by striking ``$425,800'' in clause (ii)(III) and 
        inserting ``$500,000''.
    (b) Effective Date.--The amendments made by this Act shall apply 
with respect to taxable years beginning after the date of enactment of 
this Act.
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