Lower Your Taxes Act
Summary
What This Bill Does
The bill creates dramatically expands the EITC by roughly doubling credit percentages (e.g., 34% to 68% for one child), raising earned income thresholds from $6,330-$8,890 to $15,000-$27,000, reducing phaseout percentages, establishes a federal program to make annual payments to individuals in states with non-refundable earned income tax credits, effectively making those state credits refundable through federal payments, and creates a new refundable monthly child tax credit (Section 24A) of $300 per child aged 6+ and $350 per child under 6, with income-based phaseout, and replaces existing Section 24 child tax credit structure. It relies on tax credits, tax rate changes, appropriations, and reporting requirements. The main policy areas are Taxation, Social Welfare, Labor, and Finance.
Who Benefits and How
Federal government (tax revenue) could gain revenue opportunities, Low-income workers with children could see lower costs, and Low-income families with children could see lower costs.
Who Bears the Burden and How
Very large corporations (over $5B adjusted financial statement income) could face higher costs, High-income individuals with capital gains (income over $1M) could face higher costs, and All C corporations could face higher costs.
Key Provisions
- Creates dramatically expands the EITC by roughly doubling credit percentages (e.g., 34% to 68% for one child), raising earned income thresholds from $6,330-$8,890 to $15,000-$27,000, reducing phaseout percentages...
- Establishes a federal program to make annual payments to individuals in states with non-refundable earned income tax credits, effectively making those state credits refundable through federal payments.
- Creates a new refundable monthly child tax credit (Section 24A) of $300 per child aged 6+ and $350 per child under 6, with income-based phaseout, and replaces existing Section 24 child tax credit structure.
- Creates detailed structure of the monthly child tax credit: $300/month per child 6+, $350/month per child under 6, with two-tier income phaseout starting at $150,000/$112,500 (initial) and $400,000/$200,000 (secondary)...
- Creates a $500 annual tax credit for non-child dependents (e.g., elderly parents, disabled relatives) with income-based phaseout starting at $400,000 (joint), $200,000 (single).
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
The bill creates dramatically expands the EITC by roughly doubling credit percentages (e.g., 34% to 68% for one child), raising earned income thresholds from $6,330-$8,890 to $15,000-$27,000, reducing phaseout percentages, establishes a federal program to make annual payments to individuals in states with non-refundable earned income tax credits, effectively making those state credits refundable through federal payments, and creates a new refundable monthly child tax credit (Section 24A) of $300 per child aged 6+ and $350 per child under 6, with income-based phaseout, and replaces existing Section 24 child tax credit structure.
Key Policy Areas
Taxation, Social Welfare, Labor, Finance
Primary Purpose
The bill creates dramatically expands the EITC by roughly doubling credit percentages (e.g., 34% to 68% for one child), raising earned income thresholds from $6,330-$8,890 to $15,000-$27,000, reducing phaseout percentages, establishes a federal program to make annual payments to individuals in states with non-refundable earned income tax credits, effectively making those state credits refundable through federal payments, and creates a new refundable monthly child tax credit (Section 24A) of $300 per child aged 6+ and $350 per child under 6, with income-based phaseout, and replaces existing Section 24 child tax credit structure.
Policy Domains
Lower Your Taxes Act
Identified Gains
- Federal government (tax revenue)
- Low-income workers with children
- Low-income families with children
- Families with children under 6
- Families with children under 18
Identified Costs
- Very large corporations (over $5B adjusted financial statement income)
- High-income individuals with capital gains (income over $1M)
- All C corporations
- Treasury Department / IRS
- Companies engaged in stock buybacks
Sponsors
Legislative Progress
In CommitteeMrs. Sykes introduced the following bill; which was referred to …
Introduced in House
Referred to the House Committee on Ways and Means.
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Federal government, Federal government (tax revenue), Treasury Department
Positive-direction: Federal government (tax revenue)
Negative-direction: Federal government, Treasury Department, Treasury Department / IRS
Families with children aged 6-17, Families with children receiving monthly CTC payments, Families with children under 18
Low-income childless workers, Low-income workers with children, Workers in states with non-refundable EITCs
Caregivers for elderly or disabled dependents, Taxpayers with non-child dependents
High-income individuals with capital gains (income over $1M)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of the Treasury
Key Definitions
Terms defined in this bill
Individual eligible for and claiming a non-refundable state earned income tax credit in an eligible state for taxable years after 2025
$300 per child aged 6+ and $350 per child under 6, subject to income-based phaseout starting at $150,000 (joint), $112,500 (single)
Any dependent who is not a specified child and who would still qualify as a dependent under residency requirements
Excess of what state EITC would be if refundable over actual non-refundable credit claimed
Percentage by which per capita nominal GDP for preceding year exceeds per capita nominal GDP for 2025, used to index EITC thresholds
State with a non-refundable EITC in effect at date of enactment that enters an information-sharing agreement with the Secretary
Individual under age 18 with SSN who is a son, daughter, stepchild, foster child, sibling, or descendant thereof, sharing principal abode with taxpayer for more than half the year
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology