Editor’s Note: Laura Weiss from Punchbowl News broke the story on this introduction.
Washington, D.C. — Today, U.S. Congressman Andy Barr (KY-06) reintroduced the Middle Class Savings Act, a bill that modernizes the federal tax code by aligning and lowering capital gains tax bracket thresholds with current income tax brackets. This commonsense fix will provide middle-income Americans with much-needed tax relief as they save and invest for their futures.
Currently, capital gains tax brackets are based on outdated income thresholds that have not kept pace with inflation. As a result, many middle-class taxpayers are being pushed into higher capital gains tax brackets—even when their overall income remains modest. Congressman Barr’s legislation corrects this disparity by updating the breakpoints for capital gains to reflect the same income levels used in the current income tax brackets.
“The tax code shouldn’t punish middle-class families for doing the right thing—saving, investing, and planning for the future,” said Congressman Barr. “This bill brings fairness to the system and ensures working Americans aren’t hit with higher taxes simply because Washington hasn’t kept up with inflation.”
“National Taxpayers Union is pleased to support Rep. Andy Barr's Middle Class Savings Act, which will effectively reduce capital gains tax rates for millions of Americans. This bill would not only provide much needed tax relief, it would also encourage taxpayers to invest more at a time when personal savings rates continue to lag. We urge Congress to swiftly pass this important, pro-taxpayer bill.” -Brandon Arnold, EVP, National Taxpayer Union
“Congressman Barr should be applauded for introducing the Middle Class Savings Act, legislation that will cut capital gains taxes and make it easier for American families and individuals to invest and save,” said Grover Norquist, President of Americans for Tax Reform. “This legislation builds on the success of the Tax Cuts and Jobs Act and should be supported by all lawmakers.”
The Middle Class Savings Act is part of Congressman Barr’s broader efforts to strengthen economic opportunity and financial security for American families. By encouraging savings and long-term investment, the legislation supports retirement planning and wealth-building for working Americans.
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