HR976-118

Introduced

To amend the Internal Revenue Code of 1986 to make permanent certain provisions of the Tax Cuts and Jobs Act affecting individuals, families, and small businesses, and for other purposes.

118th Congress Introduced Feb 10, 2023

Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.

Summary

What This Bill Does

This bill makes permanent the individual tax cuts from the 2017 Tax Cuts and Jobs Act that were set to expire after 2025. It preserves lower income tax rates, the nearly-doubled standard deduction, the expanded child tax credit, and the doubled estate tax exemption.

Who Benefits and How

High-income taxpayers benefit most from permanent lower marginal rates (top rate stays at 37% instead of reverting to 39.6%) and the doubled estate tax exemption ($10 million instead of $5 million), allowing larger tax-free wealth transfers. Upper-middle-class families benefit from the increased child tax credit ($2,000 per child vs. $1,000) and expanded 529 account uses for private K-12 tuition and homeschooling. Small business owners benefit from the permanent 20% deduction on pass-through income.

Who Bears the Burden and How

Taxpayers in high-tax states (NY, NJ, CA) face continued burden from the permanent $10,000 cap on state and local tax (SALT) deductions, limiting their ability to deduct state income and property taxes. The federal government loses significant tax revenue (estimated $2-4 trillion over 10 years), potentially increasing deficits or requiring spending cuts. Low-income workers gain less since many already paid little federal income tax.

Key Provisions

  • Makes permanent the seven individual tax brackets with rates of 10%, 12%, 22%, 24%, 32%, 35%, and 37%
  • Preserves the increased standard deduction ($24,000 for married couples vs. $12,700 before TCJA)
  • Maintains expanded child tax credit at $2,000 per child with $1,400 refundable portion
  • Doubles estate tax exemption permanently to $10 million (indexed for inflation)
  • Keeps $10,000 cap on state and local tax (SALT) deductions

Evidence Chain:

This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.

At a Glance

What This Bill Does

Makes permanent the individual and estate tax provisions of the 2017 Tax Cuts and Jobs Act (TCJA) that were scheduled to expire after 2025, including lower tax rates, increased standard deduction, expanded child tax credit, and doubled estate tax exemption.

Key Policy Areas

Taxation, Family Policy, Education

Primary Purpose

Makes permanent the individual and estate tax provisions of the 2017 Tax Cuts and Jobs Act (TCJA) that were scheduled to expire after 2025, including lower tax rates, increased standard deduction, expanded child tax credit, and doubled estate tax exemption.

Policy Domains

Taxation Family Policy Education

Title I - Individuals and Families

Identified Gains
Contextual inference, no direct clause citation
  • High-income individual taxpayers
  • Wealthy estate holders
  • Pass-through business owners
  • Families with children
  • Private school families
  • Homeschooling families
Model: N/A | Version: bill_summary_v2 | Source: ih

Contextual inference, no direct clause citation

Identified Costs
Contextual inference, no direct clause citation
  • Taxpayers in high-tax states
  • Federal Treasury
  • Taxpayers claiming miscellaneous itemized deductions
Model: N/A | Version: bill_summary_v2 | Source: ih

Contextual inference, no direct clause citation

Title II - Alternative Minimum Tax

Identified Gains
Contextual inference, no direct clause citation
  • Upper-middle-income taxpayers previously subject to AMT
Model: N/A | Version: bill_summary_v2 | Source: ih

Contextual inference, no direct clause citation

Identified Costs
Contextual inference, no direct clause citation
  • Federal Treasury
Model: N/A | Version: bill_summary_v2 | Source: ih

Contextual inference, no direct clause citation

Legislative Progress

Introduced
Introduced Committee Passed
Feb 10, 2023

Mr. Buchanan (for himself, Mr. Perry, Mr. Joyce of Ohio, …

Stakeholder Effects

cui bono?

How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.

Taxpayers
29 mentions across 20 clauses
+14 positive -13 negative ?2 uncertain

Bicycle commuters receiving employer reimbursements, Borrowers with student loan debt receiving forgiveness, Civilian employees receiving moving reimbursements

Positive-direction: Borrowers with student loan debt receiving forgiveness, Families with children, High-income individual taxpayers, High-income individuals making large charitable donations, High-income taxpayers who itemize deductions, Homeschooling families, Individual taxpayers across all income levels, Individual taxpayers who take the standard deduction, Individuals with disabilities and their families, Middle-income families, Taxpayers with high itemized deductions, Upper-middle-income families previously phased out, Upper-middle-income taxpayers previously subject to AMT, Wealthy individuals and families with large estates

Negative-direction: Bicycle commuters receiving employer reimbursements, Civilian employees receiving moving reimbursements, Civilian workers who relocate for work, Employees with unreimbursed business expenses, High-income homeowners in expensive housing markets, High-income taxpayers with significant business losses, Homeowners using home equity loans, Homeowners with mortgages over $750,000, Investors paying advisory fees, Large families who previously benefited from multiple exemptions, Professional gamblers and frequent bettors, Taxpayers in high-tax states (NY, CA, NJ, CT), Taxpayers with casualty losses not from federal disasters

Government
10 mentions across 10 clauses
+4 positive -6 negative

Federal Treasury

Federal Treasury faces effects in multiple directions

Professional Services
3 mentions across 3 clauses
-3 negative

Estate planning attorneys and wealth advisors, Tax preparation services

Military
3 mentions across 3 clauses
+1 positive ?2 uncertain

Active-duty military personnel, U.S. military personnel serving in Sinai Peninsula

Real Estate
2 mentions across 2 clauses
+1 positive -1 negative

Real estate industry in high-cost markets, Real estate investors using pass-through structures

Positive-direction: Real estate investors using pass-through structures

Negative-direction: Real estate industry in high-cost markets

Financial Services
2 mentions across 2 clauses
+1 positive -1 negative

Financial services firms managing ABLE accounts, Wealthy investors in pass-through entities

Positive-direction: Financial services firms managing ABLE accounts

Negative-direction: Wealthy investors in pass-through entities

Small Business
1 mention across 1 clause
+1 positive

Pass-through business owners (S-corps, partnerships, sole proprietors)

Nonprofits
1 mention across 1 clause
+1 positive

Charitable organizations and nonprofits

23/24
sections analyzed
Full impact breakdown

Bill Structure & Actor Mappings

Who is "The Secretary" in each section?

Domains
Taxation Family Policy Education Estate Planning
Domains
Taxation

Key Definitions

Terms defined in this bill

2 terms
"qualifying child" §24

A dependent under age 17 who is a qualifying child with a valid SSN

"qualified business income deduction" §199A

20% deduction for pass-through business income (sole proprietorships, partnerships, S-corps)

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