To amend the Internal Revenue Code of 1986 to make permanent the individual tax provisions of the tax reform law, and for other purposes.
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 in 2025-2026. It locks in lower income tax rates, the nearly-doubled standard deduction, the doubled child tax credit, and the doubled estate tax exemption.
Who Benefits and How
- High-income individuals and families benefit most from permanent lower tax brackets and the $10 million estate tax exemption (up from $5 million), potentially saving hundreds of thousands in taxes.
- Pass-through business owners (S-corps, partnerships, sole proprietors) keep the permanent 20% qualified business income deduction, reducing their effective tax rate.
- Middle-class families benefit from the permanent $2,000 child tax credit (up from $1,000) and higher standard deduction ($18,800 vs $4,400 for heads of household).
Who Bears the Burden and How
- Federal government faces reduced tax revenue estimated at over $3 trillion over 10 years from making these cuts permanent.
- Taxpayers in high-tax states remain limited to $10,000 SALT deduction cap permanently, increasing their effective federal tax burden.
- Individuals who itemize deductions lose personal exemptions and miscellaneous itemized deductions permanently.
Key Provisions
- Permanent lower individual income tax rate brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%)
- Permanent 20% deduction for qualified pass-through business income
- Permanent $10,000 cap on state and local tax (SALT) deductions
- Permanent doubling of child tax credit to $2,000 with higher income thresholds
- Permanent doubling of estate and gift tax exemption to $10 million (inflation-adjusted)
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 tax provisions from the Tax Cuts and Jobs Act of 2017 that were scheduled to sunset, including lower tax rates, increased standard deduction, doubled child tax credit, and increased estate tax exemption.
Key Policy Areas
Taxation, Individual Income Tax, Estate and Gift Tax, Small Business
Primary Purpose
Makes permanent the individual tax provisions from the Tax Cuts and Jobs Act of 2017 that were scheduled to sunset, including lower tax rates, increased standard deduction, doubled child tax credit, and increased estate tax exemption.
Policy Domains
Individual Tax Provisions
Identified Gains
Contextual inference, no direct clause citation- High-income individuals
- Pass-through business owners
- Wealthy families (estate tax)
- Families with children
- Standard deduction filers
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Federal Treasury (reduced revenue)
- Taxpayers in high-tax states (SALT cap)
- Itemizing taxpayers (lost deductions)
- Bicycle commuters (lost exclusion)
Contextual inference, no direct clause citation
Sponsors
Ted Cruz
R-TX | Primary Sponsor
Legislative Progress
IntroducedMr. Cruz (for himself and Mr. Braun) introduced the following …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Bicycle commuters receiving employer reimbursements, Charitable donors making large cash contributions, Civilian employees who relocate for work
Positive-direction: Charitable donors making large cash contributions, Disabled former students with discharged student loans, Families of deceased student loan borrowers, Families with children, High-income individuals in top tax brackets, High-income taxpayers who itemize deductions, Individual taxpayers across all income levels, Individuals with disabilities and their families, Middle and lower-income families, Middle and upper-middle income families, Taxpayers who take the standard deduction, Taxpayers with large itemized deductions, Upper-middle income taxpayers previously subject to AMT, Wealthy families with estates over $5 million
Negative-direction: Bicycle commuters receiving employer reimbursements, Civilian employees who relocate for work, Civilian workers who relocate for new jobs, Employees with unreimbursed work expenses, High-income homeowners with large property tax bills, Homeowners with home equity loans, Homeowners with mortgages over $750,000, Large families who benefited from multiple personal exemptions, Taxpayers in high-tax states (NY, NJ, CA, etc.), Taxpayers who itemize and claimed tax prep or investment fees, Taxpayers with casualty losses outside federally-declared disaster areas, Victims of theft or non-disaster property damage
Federal Treasury, State and local governments in high-tax states
Federal Treasury faces effects in multiple directions
Family-owned businesses being transferred, Non-corporate taxpayers with large business losses, Pass-through business owners (S-corps, partnerships, LLCs, sole proprietors)
Positive-direction: Family-owned businesses being transferred, Pass-through business owners (S-corps, partnerships, LLCs, sole proprietors)
Negative-direction: Non-corporate taxpayers with large business losses
Estate planning attorneys and advisors, High-income professionals with pass-through income
ABLE account administrators and financial institutions
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
Key Definitions
Terms defined in this bill
Redesignated from former Section 152 (personal exemptions) to provide definition of dependent for purposes like child tax credit
A member of the Armed Forces of the United States on active duty who moves pursuant to a military order and incident to a permanent change of station
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