I 
118TH CONGRESS 
1ST SESSION H. R. 5953 
To amend the Internal Revenue Code of 1986 to expand the earned income 
and child tax credits, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 12, 2023 
Mrs. SYKES introduced the following bill 
OCTOBER 25, 2023 
Referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to expand 
the earned income and child tax credits, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Lower Your Taxes Act’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Sense of Congress. 
Sec. 3. Expansion of earned income tax credit. 
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Sec. 4. Payments to taxpayers determined by treating State non-refundable 
earned income tax credits as refundable. 
Sec. 5. Establishment of refundable child tax credit with monthly advance pay-
ment. 
Sec. 6. Capital gains rates not applicable to certain high income taxpayers. 
Sec. 7. Increase in rates of certain corporate taxes. 
SEC. 2. SENSE OF CONGRESS. 
It is the sense of Congress that the net revenue de-
rived from this Act should be used to reduce the national 
deficit, to the extent thereof, and thereafter to reduce the 
national debt. 
SEC. 3. EXPANSION OF EARNED INCOME TAX CREDIT. 
(a) CREDIT PERCENTAGE.—The table contained in 
section 32(b)(1) of the Internal Revenue Code of 1986 is 
amended— 
(1) by striking ‘‘34’’ and inserting ‘‘68’’, 
(2) by striking ‘‘40’’ and inserting ‘‘80’’, 
(3) by striking ‘‘45’’ and inserting ‘‘90’’, and 
(4) by striking ‘‘7.65’’ in the column with the 
heading ‘‘The credit percentage is:’’ and inserting 
‘‘35’’. 
(b) PHASEOUT PERCENTAGE.—The table contained 
in section 32(b)(1) of such Code is amended— 
(1) by striking ‘‘15.98’’ and inserting ‘‘7’’, 
(2) by striking ‘‘21.06’’ both places it appears 
and inserting ‘‘10’’, and 
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(3) by striking ‘‘7.65’’ in the column with the 
heading ‘‘The phaseout percentage is:’’ and inserting 
‘‘7’’. 
(c) EARNED INCOME AMOUNT.—The table contained 
in section 32(b)(2)(A) of such Code is amended— 
(1) 
by 
striking 
‘‘$6,330’’ 
and 
inserting 
‘‘$19,000’’, 
(2) 
by 
striking 
‘‘$8,890’’ 
and 
inserting 
‘‘$27,000’’, and 
(3) 
by 
striking 
‘‘$4,220’’ 
and 
inserting 
‘‘$15,000’’. 
(d) PHASEOUT AMOUNT.— 
(1) IN GENERAL.—The table contained in sec-
tion 32(b)(2)(A) of such Code is amended— 
(A) by striking ‘‘$11,610’’ both places it 
appears and inserting ‘‘$30,000’’, and 
(B) by striking ‘‘$5,280’’ and inserting 
‘‘$15,000’’. 
(2) JOINT RETURNS.—Section 32(b)(2)(B) of 
such Code is amended by striking ‘‘determined 
under subparagraph (A) shall be increased by 
$5,000’’ and inserting ‘‘twice the amount deter-
mined under subparagraph (A)’’. 
(3) INFLATION ADJUSTMENT.—Section 32(j) of 
such Code is amended to read as follows: 
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‘‘(j) INFLATION ADJUSTMENTS.— 
‘‘(1) 
EARNED
INCOME
AND
PHASEOUT 
AMOUNTS.— 
‘‘(A) IN
GENERAL.—In the case of any 
taxable year beginning after 2024, each of the 
dollar amounts in subsection (b)(2)(A) shall be 
increased by an amount equal to— 
‘‘(i) such dollar mount, multiplied by 
‘‘(ii) the GDP adjustment determined 
under subparagraph (B) for the calendar 
year in which the taxable year begins. 
‘‘(B) GDP ADJUSTMENT.—For purposes 
of this paragraph, the term ‘GDP adjustment’ 
for any calendar year is the percentage (if any) 
by which— 
‘‘(i) the per capita nominal gross do-
mestic product for the preceding calendar 
year (as determined by the Secretary), ex-
ceeds 
‘‘(ii) the per capita nominal gross do-
mestic product for calendar year 2023 (as 
determined by the Secretary). 
‘‘(C) ROUNDING.—If any dollar amount in 
subsection (b)(2)(A), after any increase under 
subparagraph (A), is not a multiple of $10, 
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such dollar amount shall be rounded to the 
nearest multiple of $10. 
‘‘(2) EXCESSIVE INVESTMENT INCOME.— 
‘‘(A) IN
GENERAL.—In the case of any 
taxable year beginning after 2021, the dollar 
amount in subsection (i)(1) shall be increased 
by an amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins, determined by substituting ‘calendar 
year 2020’ for ‘calendar year 2016’ in sub-
paragraph (A)(ii) thereof. 
‘‘(B) ROUNDING.—If the dollar amount in 
subsection (i)(1), after any increase under sub-
paragraph (A), is not a multiple of $50, such 
dollar amount shall be rounded to the next low-
est multiple of $50.’’. 
(e) AGE LIMITATIONS.—Section 32(c)(1)(A)(ii)(II) of 
such Code is amended by striking ‘‘has attained age 25 
but not attained age 65’’ and inserting ‘‘has attained age 
18’’. 
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(f) NOTIFICATION OF TAXPAYERS BY TREASURY OF 
POTENTIAL ELIGIBILITY FOR THE EARNED INCOME TAX 
CREDIT.— 
(1) IN
GENERAL.—With respect to taxable 
years beginning in calendar years after 2023, the 
Secretary shall establish a program to notify (wheth-
er by electronic means or otherwise) specified indi-
viduals that such individuals may be eligible for the 
earned income tax credit. 
(2) SPECIFIED INDIVIDUAL.—For purposes of 
this subsection, the term ‘‘specified individual’’ 
means any individual who— 
(A) based on information available to the 
Secretary related to the taxable year or the pre-
ceding taxable year, the Secretary determines is 
likely to be eligible for the earned income tax 
credit, and 
(B) either— 
(i) filed a return of tax for such tax-
able year and did not claim the earned in-
come tax credit, or 
(ii) did not (as of such determination) 
file a return of tax for such taxable year. 
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(3) SECRETARY.—For purposes of this sub-
section, the term ‘‘Secretary’’ means the Secretary 
of the Treasury or the Secretary’s delegate. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2023. 
SEC. 4. PAYMENTS TO TAXPAYERS DETERMINED BY TREAT-
ING STATE NON-REFUNDABLE EARNED IN-
COME TAX CREDITS AS REFUNDABLE. 
(a) IN GENERAL.—The Secretary shall establish a 
program for making annual payments to eligible individ-
uals equal to the State refundable earned income tax cred-
it equivalency amount with respect to taxable years begin-
ning in calendar years after 2023. 
(b) ELIGIBLE INDIVIDUAL.—For purposes of this 
section— 
(1) IN
GENERAL.—The term ‘‘eligible indi-
vidual’’ means any individual who is eligible for, and 
claims, a non-refundable earned income tax credit 
for a taxable year beginning after December 31, 
2023, under the income tax laws of an eligible State. 
(2) ELIGIBLE
STATE.—The term ‘‘eligible 
State’’ means any State if— 
(A) the Secretary determines that such 
States has in effect, as of the date of the enact-
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ment of this Act, a non-refundable earned in-
come tax credit, and 
(B) such State enters into an agreement 
with the Secretary to provide the Secretary 
such information as the Secretary may require 
to administer this section. 
(3) NON-REFUNDABLE
EARNED
INCOME
TAX 
CREDIT.— 
(A) IN GENERAL.—The term ‘‘non-refund-
able earned income tax credit’’ means, with re-
spect to any State, a credit against the income 
tax imposed by such State which the Secretary 
has determined is based on the earned income 
of the taxpayer and which is limited to the tax 
liability of such taxpayer. 
(B) TREATMENT
OF
CERTAIN
CREDIT 
MODIFICATIONS.—A credit shall not be treated 
as a non-refundable earned income tax credit 
for any taxable year if the Secretary determines 
that such credit as in effect for such taxable 
year has been modified (relative to such credit 
as in effect on the date of the enactment of this 
Act) in manner which suggests that a signifi-
cant purpose of such modification was to in-
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crease the amount of payments made under this 
section. 
(C) TREATMENT OF CREDITS SCHEDULED 
TO TERMINATE.—A credit shall not be treated 
as non-refundable earned income tax credit for 
any taxable year if such credit was not sched-
uled to be in effect for such taxable year under 
the income tax laws of the State as in effect on 
the date of the enactment of this Act. 
(c) STATE REFUNDABLE EARNED INCOME TAX 
CREDIT EQUIVALENCY AMOUNT.—For purposes of this 
section, the term ‘‘State refundable earned income tax 
credit equivalency amount’’ means, with respect to any in-
dividual for any taxable year, the amount determined by 
the Secretary as being the excess (if any) of— 
(1) the amount of the non-refundable earned in-
come tax credit which would have been allowed to 
such individual for such taxable year if such credit 
were not limited based on the tax liability of the tax-
payer, over 
(2) the amount by which such individual’s State 
income tax liability would increase if such credit 
were not allowed (determined after taking into ac-
count all other income tax credits other than income 
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tax credits which constitute credits for the payment 
of tax). 
(d) PAYMENTS TREATED IN SAME MANNER AS RE-
FUNDABLE INCOME TAX CREDITS.—Except as otherwise 
provided by the Secretary, the program established under 
subsection (a) shall effectuate the payments described 
therein by deeming the amount of such payment as a pay-
ment of Federal income tax for purposes of the Internal 
Revenue Code of 1986. Any overpayment of tax attrib-
utable to such deemed payment shall be refunded by the 
Secretary as soon as practicable. For purposes of section 
1324 of title 31, United States Code, any such refund 
shall be treated in the same manner as a refund due from 
a credit provision referred to in subsection (b)(2) of such 
section. 
(e) SECRETARY.—For purposes of this section, the 
term ‘‘Secretary’’ means the Secretary of the Treasury or 
the Secretary’s delegate. 
SEC. 5. ESTABLISHMENT OF REFUNDABLE CHILD TAX 
CREDIT WITH MONTHLY ADVANCE PAYMENT. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 24 the fol-
lowing new sections: 
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‘‘SEC. 24A. MONTHLY CHILD TAX CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—There shall be al-
lowed as a credit against the tax imposed by this chapter 
for the taxable year the sum of the monthly specified child 
allowances determined with respect to the taxpayer under 
subsection (b) for each calendar month during such tax-
able year. 
‘‘(b) MONTHLY SPECIFIED CHILD ALLOWANCE.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘monthly specified child allowance’ 
means, with respect to any taxpayer for any cal-
endar month, the sum of— 
‘‘(A) $300, with respect to each specified 
child of such taxpayer who will (as of the close 
of such month) have attained age 6, plus 
‘‘(B) $350, with respect to each specified 
child of such taxpayer who will not (as of the 
close of such month) have attained age 6. 
‘‘(2) LIMITATIONS
BASED
ON
MODIFIED
AD-
JUSTED GROSS INCOME.— 
‘‘(A) INITIAL
REDUCTION.—The monthly 
specified child allowance otherwise determined 
under paragraph (1) with respect to any tax-
payer for any calendar month shall be reduced 
(but not below zero) by 1⁄12 of 5 percent of the 
excess (if any) of the taxpayer’s modified ad-
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justed gross income for the applicable taxable 
year over the initial threshold amount in effect 
for such applicable taxable year. 
‘‘(B) LIMITATION
ON
INITIAL
REDUC-
TION.—In the case of any calendar month be-
ginning before January 1, 2026, the amount of 
the reduction under subparagraph (A) shall not 
exceed the lesser of— 
‘‘(i) the excess (if any) of— 
‘‘(I) the monthly specified child 
allowance with respect to the taxpayer 
for such calendar month (determined 
without regard to this paragraph), 
over 
‘‘(II) the amount which would be 
determined under subclause (I) if the 
dollar amounts in effect under sub-
paragraphs (A) and (B) of paragraph 
(1) were each equal to $166.67, or 
‘‘(ii) 1⁄12 of 5 percent of the excess of 
the secondary threshold amount over the 
initial threshold amount. 
‘‘(C) SECONDARY
REDUCTION.—In the 
case of any calendar month beginning before 
January 1, 2026, the monthly specified child al-
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