Title: Middle Class Tax Break Act of 2017
Policy area: Taxation

Summary:
Middle Class Tax Break Act of 2017
This bill amends the Internal Revenue Code to allow a working America tax credit equal to the lesser of: (1) 6.2% of the earned income of the taxpayer, or (2) $500 ($1,000 in the case of a joint return or a head of a household).
Individuals whose modified adjusted gross income does not exceed $100,000 ($200,000 in the case of a joint return or a head of a household) are eligible for the credit.
The following individuals or entities are ineligible for the credit: (1) estates or trusts, (2) nonresident aliens, (3) individuals who do not include a Social Security number on their tax return, and (4) individuals for whom another taxpayer is allowed a deduction for a personal exemption.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1840 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                S. 1840

To amend the Internal Revenue Code of 1986 to provide a working America 
                              tax credit.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 19, 2017

  Ms. Hassan introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide a working America 
                              tax credit.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Middle Class Tax Break Act of 
2017''.

SEC. 2. WORKING AMERICA TAX CREDIT.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 36 the following new section:

``SEC. 36A. WORKING AMERICA TAX CREDIT.

    ``(a) Allowance of Credit.--In the case of an eligible individual, 
there shall be allowed as a credit against the tax imposed by this 
subtitle for the taxable year an amount equal to the lesser of--
            ``(1) 6.2 percent of earned income of the taxpayer, or
            ``(2) $500 ($1,000 in the case of a joint return or a head 
        of a household).
    ``(b) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Eligible individual.--
                    ``(A) In general.--The term `eligible individual' 
                means any individual--
                            ``(i) whose modified adjusted gross income 
                        is not greater than $100,000 ($200,000 in the 
                        case of a joint return or a head of a 
                        household), and
                            ``(ii) who is not--
                                    ``(I) a nonresident alien,
                                    ``(II) an individual with respect 
                                to whom a deduction under section 151 
                                is allowable to another taxpayer for a 
                                taxable year beginning in the calendar 
                                year in which the individual's taxable 
                                year begins, or
                                    ``(III) an estate or trust.
                    ``(B) Modified adjusted gross income.--For purposes 
                of subparagraph (A), the term `modified adjusted gross 
                income' means the adjusted gross income of the taxpayer 
                for the taxable year increased by any amount excluded 
                from gross income under section 911, 931, or 933.
                    ``(C) Identification number requirement.--The term 
                `eligible individual' shall not include any individual 
                who does not include on the return of tax for the 
                taxable year--
                            ``(i) such individual's social security 
                        account number, and
                            ``(ii) in the case of a joint return, the 
                        social security account number of one of the 
                        taxpayers on such return.
                For purposes of the preceding sentence, the social 
                security account number shall not include a TIN issued 
                by the Internal Revenue Service.
            ``(2) Earned income.--The term `earned income' has the 
        meaning given such term by section 32(c)(2).''.
    (b) Authority Relating to Clerical Errors.--Section 6213(g)(2) of 
the Internal Revenue Code of 1986 is amended by striking ``and'' at the 
end of subparagraph (P), by striking the period at the end of 
subparagraph (Q) and inserting ``, and'', and by adding at the end the 
following new subparagraph:
                    ``(R) an omission of the reduction required under 
                section 36A(c) with respect to the credit allowed under 
                section 36A or an omission of the correct social 
                security account number required under section 
                36A(b)(1)(C).''.
    (c) Conforming Amendments.--
            (1) Section 6211(b)(4)(A) of the Internal Revenue Code of 
        1986 is amended by inserting ``36A,'' after ``36,''.
            (2) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 36 the following new item:

``Sec. 36A. Working America tax credit.''.
    (d) Effective Date.--This section, and the amendments made by this 
section, shall apply to taxable years beginning after December 31, 
2017.
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