Daines Pushing Relief For Middle Class Families
A group of Republican senators, including U.S. Sen. Steve Daines, R-Mont., have introduced a bill aimed to help middle class families survive and save despite skyrocketing inflation economic conditions.
“From prices at the grocery store to the gas pump, President Biden’s economy is bankrupting Montana families and making it hard to plan for the future, or even tomorrow,” Daines said in a press release. “This bill will help give hardworking, middle class Montana families a leg up by expanding tax free investment and retirement savings and will have the added benefit of helping combat inflation.”
The proposal includes: * Expand the current 0 percent tax bracket for capital gains and dividends to align it with the top of current 22 percent tax bracket. For 2022, this means increasing the top of the zero bracket from $41,675 ($83,350 married) to $89,075 ($178,150 married).
* Net Investment Tax marriage penalty relief and index NIT to inflation. For 2022, the NIT threshold for married filing jointly would be increased from $250,000 to $400,000 and its income thresholds are indexed to inflation.
* Exclude the first $300 ($600 married) of interest income from tax. * Enhance and expand Savers Credit by increasing maximum credit amount and expanding its availability to more taxpayers.
* Offset all provisions by extending SALT cap as necessary.
Sponsors of the bill noted that middle class savers are being hit particularly hard by inflation as it erodes savings. Current inflation is outpacing any interest earned or gains accrued for many individuals. This bill provides targeted tax relief to those hit hardest by inflation, including middle-class savers, retirees relying on retirement savings, small businesses and farmers. Proposal reduces taxes on capital encouraging more business investment, which is necessary to increase productivity. Democrats have proposed raising taxes on businesses. Such tax hikes would discourage investment thereby reducing productivity at a time when we need more production — not less — to combat unchecked inflation.
Daines announced the Middle Class Savings and Investment Act with U.S. Sens. Bill Cassidy, M.D. (R-LA), Chuck Grassley (R-IA), John Barrasso (R-WY), and James Lankford (R-OK).