Sen. Booker Unveils 'Keep Your Pay Act' Tax Cut Proposal

Plan would eliminate federal income tax on first $75,000 of income for most households

Published on Mar. 9, 2026

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U.S. Senator Cory Booker (D-NJ) has unveiled a new tax-cut proposal called the 'Keep Your Pay Act,' which would eliminate federal income tax on the first $75,000 of income for most households. Booker announced the plan as he prepares for a 2026 re-election campaign, pitching it as a way to provide significant financial relief to working families amid rising costs.

Why it matters

The Keep Your Pay Act represents one of the most significant proposed changes to the federal tax system in decades. If passed, it could dramatically reduce the tax burden for millions of middle-class families, but would also require raising taxes on corporations and high-income earners to offset the lost revenue.

The details

Under the legislation, the standard deduction would increase to $75,000 for married couples filing jointly, with proportional deductions for single filers and heads of household. Booker's office estimates the change could reduce the median family's federal income tax burden by about 85%. The plan also includes several expanded tax credits aimed at helping families, including increasing the Child Tax Credit and expanding the Earned Income Tax Credit.

  • Booker unveiled the proposal on Monday, March 9, 2026.
  • The 2026 Senate midterm elections are approaching, with Democrats seeking to regain control of the chamber.

The players

Cory Booker

A U.S. Senator from New Jersey and a Democrat who is preparing for a 2026 re-election campaign.

New Jersey

The state that Booker represents in the U.S. Senate.

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What they’re saying

“New Jerseyans are working harder than ever, but they're struggling to get by because they're facing out-of-control costs and an economy that is stacked against them. No income tax on the first $75,000 families earn would be a game changer for working people.”

— Cory Booker, U.S. Senator (wabcradio.com)

What’s next

The Keep Your Pay Act proposal will now be debated in Congress, where it is expected to face intense debate as lawmakers consider its potential impact on federal revenues and the tax burden for different income groups.

The takeaway

Booker's Keep Your Pay Act represents a significant and ambitious tax reform proposal that could provide substantial financial relief to middle-class families, but its passage will likely depend on Democrats regaining control of the Senate and the ability to overcome opposition from Republicans and some business interests who may object to the proposed tax increases on corporations and high-income earners.