A Democratic bill with 42 Democratic cosponsors · See all 44 cosponsors
Last activity — Read twice and referred to the Committee on Finance.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
The ``Tax Cut for Workers Act of 2025'' aims to expand and permanently modify the earned income credit. The bill lowers the minimum age requirements for the credit to include younger individuals, students, and former foster or homeless youth. It also eliminates the maximum age limit for the credit and increases credit and phaseout percentages. Additionally, the bill raises earned income and phaseout amounts while establishing inflation adjustments. The legislation extends the application of the credit to various U.S. possessions and allows taxpayers to elect to use prior year income to determine their credit.
Yes· 3 of 16
- Scored +8
Would households on low incomes be better off under this?
The bill directly increases the income thresholds and credit amounts available to low-income workers.
- Scored +7
Is this likely to lift people out of poverty?
The expansion of the EIC directly targets and provides financial support to those at risk of poverty.
- Scored +6
Would people in their twenties and thirties be better off under this?
The bill lowers the minimum age for the credit, significantly benefiting young adults and students.
The opposite
- Scored -2
Does this reduce what the federal government owes?
Expanding tax credits and increasing thresholds may increase the federal deficit.
Who it would affect, and how
Potential Positive Impacts for People
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Lower age requirements for the credit: The bill reduces the minimum age for the credit, setting it at 19 for most, 24 for students, and 18 for qualified former foster or homeless youth (Section 2(a)).
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Increased access for students and vulnerable youth: By setting a minimum age of 24 for students and 18 for qualified former foster or homeless youth, the bill expands credit access for these groups (Section 2(a)).
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Elimination of age limits: The bill removes the maximum age cap of 65, allowing older individuals to remain eligible for the credit (Section 2(b)).
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Higher credit amounts: The bill increases credit and phaseout percentages from 7.65 to 15.3 (Section 2(c)).
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Increased income thresholds: The bill raises the earned income and phaseout amounts, specifically increasing the $4,220 amount to $9,820 and the $5,280 amount to $11,610 (Section 2(d)).
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Inflation protection: The bill implements inflation adjustments for various dollar amounts to account for economic changes (Section 2(e)).
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Extended coverage for U.S. possessions: The bill makes certain provisions permanent for Puerto Rico, American Samoa, and other possessions with mirror code tax systems (Section 3).
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Flexibility for taxpayers with lower income: Taxpayers whose current year income is less than the previous year can elect to use their prior year's earned income to determine their credit (Section 4(a)).
Potential Negative Impacts for People
- No negative impacts are explicitly stated in the provided text.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would households on low incomes be better off under this? — The bill directly increases the income thresholds and credit amounts available to low-income workers. Would people in their twenties and thirties be better off under this? — The bill lowers the minimum age for the credit, significantly benefiting young adults and students. Would people over 65 be better off under this? — Eliminating the maximum age cap provides financial benefits to seniors who are still working. Would students be better off under this? — The bill specifically lowers the age requirement for students to access the credit. Would retired people be better off under this? — Removing the age cap allows working retirees to benefit from the expanded credit. Would middle-income households be better off under this? — Higher income thresholds and phaseout percentages provide benefit to many near-middle-income workers. Would Black Americans be better off under this? — Increased tax credits can assist with economic mobility in various communities. Would Hispanic Americans be better off under this? — Expanded coverage for U.S. possessions likely benefits significant populations in those regions.
- Social Issues And Justice
- Is this likely to lift people out of poverty? — The expansion of the EIC directly targets and provides financial support to those at risk of poverty. Is this likely to reduce homelessness? — The bill specifically provides targeted age-based credit access for former foster and homeless youth. Does this make housing cost less? — Increased income through tax credits may assist with housing costs for low-income families. Does this narrow racial gaps in how people are treated? — Expansion of tax credits can help narrow economic disparities in underserved communities.
- Education And Technology
- Does this make college cost less? — The bill provides expanded credit access for students, helping to offset educational costs.
- Economy And Finance
- Does this cut taxes for middle-income families? — The bill increases the Earned Income Credit amounts and thresholds, providing tax relief to low-to-middle income workers. Is this likely to grow the economy? — Increased disposable income for low-income earners can stimulate local economic activity. Does this reduce what the federal government owes? — Expanding tax credits and increasing thresholds may increase the federal deficit.
- Governance And Ideology
- Does this give the federal government more power? — The bill modifies the federal Internal Revenue Code, increasing federal involvement in income support.
- 4/9/2025
- Read twice and referred to the Committee on Finance.
- 44 Cosponsors added.
- Introduced in Senate
3 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Angela AlsobrooksDemocrat · Maryland
Tammy BaldwinDemocrat · Wisconsin
Michael BennetDemocrat · Colorado
Richard BlumenthalDemocrat · Connecticut
Cory BookerDemocrat · New Jersey
Lisa Blunt RochesterDemocrat · Delaware
Maria CantwellDemocrat · Washington
Christopher CoonsDemocrat · Delaware
Richard DurbinDemocrat · Illinois
Tammy DuckworthDemocrat · Illinois
John FettermanDemocrat · Pennsylvania
Kirsten GillibrandDemocrat · New York
Ruben GallegoDemocrat · Arizona
John HickenlooperDemocrat · Colorado
Mazie HironoDemocrat · Hawaii
Martin HeinrichDemocrat · New Mexico
Amy KlobucharDemocrat · Minnesota
Mark KellyDemocrat · Arizona
Angus KingIndependent · Maine
Timothy KaineDemocrat · Virginia
Andy KimDemocrat · New Jersey
Ben LujánDemocrat · New Mexico
Edward MarkeyDemocrat · Massachusetts
Patty MurrayDemocrat · Washington
Christopher MurphyDemocrat · Connecticut
Jeff MerkleyDemocrat · Oregon
Alex PadillaDemocrat · California
Gary PetersDemocrat · Michigan
John ReedDemocrat · Rhode Island
Jacky RosenDemocrat · Nevada
Bernie SandersIndependent · Vermont
Charles SchumerDemocrat · New York
Adam SchiffDemocrat · California
Jeanne ShaheenDemocrat · New Hampshire
Brian SchatzDemocrat · Hawaii
Tina SmithDemocrat · Minnesota
Elissa SlotkinDemocrat · Michigan
Chris Van HollenDemocrat · Maryland
Ron WydenDemocrat · Oregon
Raphael WarnockDemocrat · Georgia
Peter WelchDemocrat · Vermont
Sheldon WhitehouseDemocrat · Rhode Island
Mark WarnerDemocrat · Virginia
Elizabeth WarrenDemocrat · Massachusetts