H.R.1130 - Bonus Tax Relief for America’s Seniors Act (119th Congress)
Summary
H.R.1130, the "Bonus Tax Relief for America's Seniors Act," proposes to amend the Internal Revenue Code of 1986 to increase the additional standard deduction for seniors from $600 to $5,000. This adjustment would be subject to inflation after 2026, using a cost-of-living adjustment formula. The bill aims to provide tax relief to senior citizens by reducing their taxable income.
Expected Effects
The immediate effect of this bill, if enacted, would be a reduction in the tax burden for senior citizens who claim the standard deduction. This could lead to increased disposable income for seniors. The inflation adjustment ensures that the benefit keeps pace with rising costs of living.
Potential Benefits
- Increased disposable income for senior citizens.
- Simplified tax filing for seniors who take the standard deduction.
- Potential stimulus to the economy as seniors spend their increased disposable income.
- The inflation adjustment helps maintain the real value of the tax deduction over time.
- Could reduce financial strain on seniors with fixed incomes.
Most Benefited Areas:
Potential Disadvantages
- Increased government debt due to reduced tax revenue.
- Potential for inflation to outpace the adjustment, eroding the benefit over time.
- The benefits disproportionately favor seniors who itemize deductions, potentially increasing inequality.
- May complicate tax planning due to the inflation adjustment calculation.
- Could lead to calls for similar tax breaks for other demographic groups, further straining government finances.
Most Disadvantaged Areas:
Constitutional Alignment
The bill falls under the purview of Congress's power to lay and collect taxes, as outlined in Article I, Section 8, Clause 1 of the Constitution. The bill does not appear to infringe upon any specific constitutional rights or freedoms. The bill aims to promote the general welfare by providing tax relief to senior citizens.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).