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.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 523 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 523
To amend the Internal Revenue Code of 1986 to permanently increase the
standard deduction.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 16, 2025
Mr. Miller of Ohio (for himself, Mr. Feenstra, Mr. Smith of Nebraska,
Mr. LaHood, Mrs. Miller of West Virginia, Ms. Tenney, Mr. Estes, Ms.
Van Duyne, Mr. Kustoff, Mr. Finstad, and Mr. Calvert) 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 permanently increase the
standard deduction.
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 ``Permanent Tax Cuts for American
Families Act of 2025''.
SEC. 2. INCREASE IN STANDARD DEDUCTION MADE PERMANENT.
(a) In General.--Section 63(c)(2) of the Internal Revenue Code of
1986 is amended--
(1) by striking ``$4,400'' in subparagraph (B) and
inserting ``$18,000'', and
(2) by striking ``$3,000'' in subparagraph (C) and
inserting ``$12,000''.
(b) Inflation Adjustment.--Section 63(c)(4) of such Code is amended
to read as follows:
``(4) Adjustments for inflation.--
``(A) In general.--Each dollar amount in paragraph
(2)(B), (2)(C), or (5) or subsection (f) shall be
increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year begins,
determined by substituting for `2016' in
subparagraph (A)(ii) thereof--
``(I) in the case of the dollar
amounts contained in paragraph (2)(B)
or (2)(C), `2017',
``(II) in the case of the dollar
amounts contained in paragraph (5)(A)
or subsection (f), `1987', and
``(III) in the case of the dollar
amount contained in paragraph (5)(B),
`1997'.
``(B) Rounding.--If any increase under this clause
is not a multiple of $50, such increase shall be
rounded to the next lowest multiple of $50.''.
(c) Conforming Amendment.--Section 63(c) of such Code is amended by
striking paragraph (7).
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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