March 10, 2026
Cory Booker Proposes Scrapping Federal Tax On First $75K Of Income
His 'Keep Your Pay Act' plan aims to boost key tax credits for working families.
New Jersey Democratic Sen. Cory Booker has introduced a new proposal aimed at easing the tax burden on Americans by eliminating federal income tax on the first $75,000 of a taxpayer’s income, Fox News reported.
His “Keep Your Pay Act” proposal would expand pivotal tax credits for working families by increasing the standard deduction to $75,000 for married couples who file jointly, in addition to substantial relief for single filers and heads of household. Booker’s plan is projected to reduce federal income tax on the median American family by roughly 85%.
“So here’s the big idea I want to share with you. No household in America should pay federal income tax on their first $75,000 of earnings. Keep your money,” Booker said in a video posted on X.
“…The tax system, we all know this, is rigged. It’s rigged against working people and all full of things that help people with a lot of money, whether its corporations or billionaires avoid paying taxes. It’s what happens because of the corruption down in Washington that lets the wealthiest and most powerful write our tax code.”
Not only would the legislation offset costs to the fullest extent by generating more tax revenue from corporations and the wealthy, it also includes a plan to increase the corporate tax rate, taxes on stock buybacks, and zoning in on executive compensation deductions and strengthening corporate tax enforcement.
By launching an online calculator that would allow tax payers to get an estimate on their potential savings with the bill, the proposal leans on expanding the Child Tax Credit to $3,600 per child between the ages of six and 17 and $4,320 for children under six. With a “baby bonus” worth $2,400 in the year of a child’s birth, the credit would be fully refundable.
NBC News describes Booker’s legislation as “a sweeping plan to address a constellation of economic concerns from high costs to wages failing to keep up with necessities like health care and housing.”
The outspoken senator is pushing for the bill at a time when Democrats are focused on regaining control of the House. “Americans are working harder and harder, and they’re making less and less relative to their parents and grandparents,” Booker said.
“The economy is not working. So we need big ideas that could redeem the dream of America.”
Recently, the Trump Administration has leaned on the trigger word of affordability, but has vaguely put together a plan that has worked for every American. Gary Cohn, chief economic adviser to President Donald Trump, claims the tax plan of the “One Big Beautiful Bill” targets middle-class families.
But when asked if he could guarantee that middle-class families would not get a tax increase, Cohn said, “There’s an exception to every rule.”
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