New Tax Reform Bill Could Slash Costs for US Families by 85%
A new tax reform bill could bring major financial relief to families across the US. The Keep Your Pay Act, introduced by Senator Cory Booker on March 9, 2026, is now under debate in the Senate. It proposes sweeping changes to tax credits, income exemptions, and funding mechanisms that have already sparked widespread discussion.
The bill's centrepiece is a significant expansion of the Child Tax Credit. Families with children aged 6 to 17 would receive $3,600 per child, while those with younger children (under six) would get $4,320. On top of this, a one-time Baby Bonus of $2,400 would be paid in the year a child is born.
The plan also targets workers without dependent children. It aims to boost the Earned Income Tax Credit (EITC) for younger employees and seniors, offering them greater financial support. For married couples filing jointly, the first $75,000 of income would be exempt from federal taxes—mirroring New York's recent inflation rebate threshold. Single filers and heads of household would receive scaled-down relief based on their income levels. To cover these changes, the bill proposes closing tax loopholes used by the ultra-wealthy and large corporations. It also includes higher corporate taxes and a new levy on stock buybacks. Since its introduction, Senator Booker has launched an online tax calculator to help individuals estimate potential savings. However, as of March 13, 2026, no further steps to build public or congressional support have been reported. The proposed reforms have already generated intense debate, particularly in the tri-state area. If passed, the bill could cut federal taxes by an estimated 85% for the average New York family.
The Keep Your Pay Act would reshape tax policy for millions of households if approved. Families with children, low-income workers, and middle-class earners stand to benefit the most from its provisions. The bill's progress now depends on Senate negotiations and potential amendments in the coming weeks.
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