Title: RAISE Working Families Act
Policy area: Taxation

Summary:
Rebuild Americans' Income to Strengthen and Empower Working Families Act or RAISE Working Families Act
This bill allows a new refundable income tax credit for individual taxpayers (to be known as the Middle Class Tax Credit) equal to the lesser of $500 ($1,000 for individuals filing joint returns), or the taxpayer's earned income for the taxable year. The amount of the credit is reduced by 2.5% percent of the taxpayer's modified adjusted gross income that exceeds $50,000 ($100,000 for individuals filing joint returns).

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4877 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 4877

 To amend the Internal Revenue Code of 1986 to establish a refundable 
               tax credit to help middle class taxpayers.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             October 26 (legislative day, October 19), 2020

 Ms. Cortez Masto 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 establish a refundable 
               tax credit to help middle class taxpayers.

    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 ``Rebuild Americans' Income to 
Strengthen and Empower Working Families Act'' or ``RAISE Working 
Families Act''.

SEC. 2. ESTABLISHMENT OF MIDDLE CLASS 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. MIDDLE CLASS 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) $500 ($1,000 in the case of eligible individuals 
        filing a joint return), or
            ``(2) the earned income (as defined in section 32(c)(2)) of 
        the taxpayer for the taxable year.
    ``(b) Limitation Based on Modified Adjusted Gross Income.--The 
amount of the credit allowed by subsection (a) (determined without 
regard to this subsection) for any taxable year shall be reduced (but 
not below zero) by 2.5 percent of so much of the taxpayer's modified 
adjusted gross income (as defined in section 24(b)(1)) as exceeds 
$50,000 ($100,000 in the case of a joint return).
    ``(c) Eligible Individual.--For purposes of this section, the term 
`eligible individual' has the same meaning given such term under 
section 6428(d).
    ``(d) Treatment of Possessions.--Rules similar to the rules of 
subsection (c) of section 2201 of the CARES Act (Public Law 116-136) 
shall apply for purposes of this section.''.
    (b) Clerical 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. Middle Class Tax Credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2019.
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