Cory Booker has introduced the Keep Your Pay Act, a significant legislative proposal aimed at overhauling the tax system in the United States. Released on March 11, 2026, the act seeks to provide substantial tax relief to American families, with the potential to cut taxes by roughly 85% for the median family.
The proposal includes a dramatic increase in the standard deduction, raising it for single filers from $16,100 to $37,500 and for married couples filing jointly from $32,200 to $75,000. This change is expected to allow families to keep more of their income, effectively making the first $75,000 of household income tax-free.
In addition to the standard deduction increases, the Keep Your Pay Act proposes to enhance the Earned Income Tax Credit (EITC). The maximum EITC for workers without qualifying children would rise from approximately $660 to $1,500, while eligibility would expand to include workers aged 19 and older, removing the previous age restrictions.
Furthermore, the act aims to increase the maximum Child Tax Credit (CTC) significantly. Families with children under six would see the CTC rise to $4,320 per year, while those with children aged six to 16 would benefit from an increase to $3,600 per year. Additionally, a new $2,400 ‘baby bonus’ would be introduced in the year of a child’s birth.
To fund these tax cuts, the proposal suggests raising the second-highest income tax bracket rate from 35% to 41% and increasing the top marginal tax rate from 37% to 43%. These adjustments aim to balance the financial impact of the proposed tax cuts on lower and middle-income families.
Booker has expressed that the current tax system is “rigged” and emphasized that this tax cut would provide immediate financial relief, stating, “This tax cut would immediately put more money in your pocket every month to deal with the high price of everyday expenses.”
In a broader political context, Booker has also criticized both major political parties for allowing the executive branch, particularly under Donald Trump, to exert excessive control over military engagements without congressional oversight. He warned that unchecked power could lead to further military actions without public consent.
As the Keep Your Pay Act is set to be effective from 2026 through 2035, the proposal is expected to face scrutiny and debate in Congress. Details remain unconfirmed regarding the timeline for discussions and potential amendments to the legislation.