U.S. Sen. Todd Young (R-IN) recently joined several of his Republican Senate colleagues in introducing a bill that would provide tax relief to middle-class families, retirees, small businesses, and farmers who have seen their savings erode in value as gains have not kept pace with record-high inflation.
Sen. Young on June 14 signed on as an original cosponsor of the Middle-Class Savings and Investment Act, S. 4393, alongside four other cosponsors, including U.S. Sens. Steve Daines (R-MT) and Bill Cassidy (R-LA), and bill sponsor U.S. Sen. Chuck Grassley (R-IA), to modify both the maximum capital gains tax rate and the tax on net investment income to help lower- and middle-income Americans and retirees as inflation outpaces any interest earned or gains accrued by their savings.
“The policies of Washington Democrats have led to the highest price hikes in 40 years. This record-high inflation is hitting working families and those living on a fixed income the hardest,” Sen. Young said. “Our Middle-Class Savings and Investment Act offers targeted relief to Hoosiers who are struggling with the impact of inflation.”
If enacted, the bill would exclude a reasonable amount of interest income from being subject to tax ($600 for married couples, $300 for individuals), according to a bill summary provided by the lawmakers, and would more than double the size of the zero percent (lowest) tax bracket for long-term capital gains and qualified dividends.
Additionally, S. 4393 would index the income thresholds to inflation; eliminate the marriage penalty that exists in the current net investment tax and index its income threshold to inflation; and increase the maximum ‘savers credit’ an individual may receive for contributing to qualified retirement accounts and expand the availability of this credit to more taxpayers, the summary says.
“The Middle-Class Savings and Investment Act provides important tax relief to American families to help them to save and invest in the economy,” said Americans for Tax Reform President Grover Norquist, who called S. 4383 “important, pro-taxpayer legislation.”
The National Taxpayers Union and Americans for Prosperity also endorsed the bill, which has been referred to the U.S. Senate Finance Committee for consideration.