H.R.463 - Lower Your Taxes Act (119th Congress)
Summary
H.R.463, the "Lower Your Taxes Act," proposes several amendments to the Internal Revenue Code of 1986. The bill aims to expand the earned income tax credit (EITC) and child tax credit (CTC), including monthly advance payments of the CTC. It also adjusts capital gains rates for high-income taxpayers and increases certain corporate taxes.
Expected Effects
If enacted, the bill would increase tax credits for low-to-moderate income families and individuals. Simultaneously, it would raise taxes on high-income earners and corporations. The stated intent is to reduce the national deficit and debt using the net revenue generated.
Potential Benefits
- Increased EITC benefits for low-income individuals and families, potentially reducing poverty.
- Monthly advance payments of the CTC, providing more consistent financial support to families with children.
- Potential reduction of the national deficit and debt if the revenue increases are sufficient.
- State non-refundable EITC can be treated as refundable, increasing tax benefits.
- Notification to taxpayers of potential eligibility for the EITC.
Most Benefited Areas:
Potential Disadvantages
- Increased corporate tax rates could negatively impact business investment and economic growth.
- Higher taxes on capital gains for high-income earners might discourage investment.
- The complexity of the new CTC rules could lead to errors and difficulties in claiming the credit.
- Potential for increased government spending and administrative burden due to the new programs and payment systems.
- Recapture provisions for excess advance payments of the CTC could create financial hardship for some families.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's provisions related to taxation fall 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 expansion of tax credits and changes to tax rates are within the legislative authority granted to Congress. The bill does not appear to infringe upon any specific constitutional rights or protections.
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).