RAISE Working Families Act

Bill: 116-s-4877
Sponsor: full_name: Sen. Cortez Masto, Catherine [D-NV]
Introduced: 2020-10-26
Policy area: Taxation
Latest action: action_date: 2020-10-26
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2020-10-26
action_desc: Introduced in Senate
text: <p><b>Rebuild Americans' Income to Strengthen and Empower Working Families Act or RAISE Working Families Act</b></p> <p>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).</p>

tv_txt: II 116th CONGRESS 2d Session S. 4877 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.

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 . 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: 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.