The Senator Cory Booker Tax Bill just put a real number on middle-class relief. The Keep Your Pay Act would make the first $75,000 of household income tax-free.
Our analysis suggests this is the boldest federal income tax rewrite of the year, and it lands right in the middle of a heated election-season debate over who pays what.
Key Takeaways
- The bill sets a $75,000 standard deduction for joint filers, per the official Senate release.
- About 82% of filers would get a tax cut, while the Tax Foundation analysis pegs the 10-year cost near $6.7 trillion.
- Top brackets would rise to 41% and 43%, with a higher corporate tax rate helping foot the bill.
What Is in the Keep Your Pay Act?
Here is the plan stripped to its core, as we reported earlier this week and confirmed against the Senate press release.
| Provision | What Changes |
|---|---|
| Standard deduction | First $75,000 tax-free (joint); $37,500 single; $56,250 head of household |
| Child Tax Credit | $4,320 under age 6; $3,600 ages 6–17; $2,400 “baby bonus” |
| Earned Income Tax Credit | Tripled for childless workers; ages 19–24 and 65+ added |
| Top tax brackets | Raised from 35% and 37% to 41% and 43% |
| Corporate tax rate | Increased, plus higher stock buyback tax |
How Much Would It Cost?
The Senator Cory Booker Tax Bill price tag is the headline fight, and our budget desk has been tracking the numbers closely.
The standard deduction increase alone drives most of the loss.
| Provision | Conventional | Dynamic |
|---|---|---|
| Standard Deduction Increase | -$5,875.4B | -$5,590.4B |
| Child Tax Credit Expansion | -$1,795.4B | -$1,852.6B |
| Earned Income Tax Credit Expansion | -$111.9B | -$122.4B |
| Raise Top Two Brackets to 41% & 43% | +$1,070.2B | +$651.6B |
| Total | -$6,712.5B | -$6,913.8B |
Tax Foundation General Equilibrium Model, March 2026.
Who Actually Benefits?
If you have been following this middle-class tax relief push, the spread won’t surprise you.
The biggest percentage gains land at the bottom, while high earners see a modest hit, according to the Tax Foundation.
| Income Percentile | After-Tax Income Change, 2027 | Avg. Change |
|---|---|---|
| 0% – 20% | +11.4% | +$1,257 |
| 20% – 40% | +6.0% | +$1,833 |
| 40% – 60% | +5.8% | +$3,398 |
| 60% – 80% | +5.1% | +$5,312 |
| 99% – 99.9% | -2.2% | -$23,050 |
| Top 0.1% | -2.8% | -$196,183 |
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What Does This Mean for You?
Most working households would keep more of each paycheck, and refundable credits would reach families with little income.
Our team observed one clear trade-off worth watching, which we flagged in prior coverage.
The economic math is mixed:
- Long-run GDP drops by 0.3%.
- Hours worked expand by 216,000 full-time jobs.
- The federal deficit grows because of the revenue loss.
BREAKING: In a stunning moment, Senator Cory Booker just slammed Marco Rubio for saying the war is over. The American people are still paying the costs of Trump's reckless war and this is the best response they have? Pathetic. pic.twitter.com/o7Hu5fIQ0C
— Democratic Wins Media (@DemocraticWins) June 2, 2026Where the Bill Goes Next
The Senator Cory Booker Tax Bill senator unveiled the plan at a Bloomfield, NJ roundtable, as detailed on booker.senate.gov.
Passage remains a long shot in a divided Senate.
Still, the bill resets the 2026 debate over how to fund a bigger Child Tax Credit and standard deduction without ballooning the deficit, a tension our policy team will keep covering.
For now, the Senator Cory Booker Tax Bill gives voters a sharp, numbers-driven choice on federal income tax fairness heading into November.
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