Cost of Living Tax Cut Act

This bill would change federal individual income tax brackets based on the cost of living where a taxpayer mainly lives, starting with tax years after 2026. The dollar limits of each tax bracket would be multiplied by a regional multiplier, while the tax rates themselves would stay the same. Areas with costs above 125 percent of the national average would get a multiplier of 90 percent of their cost-of-living ratio, areas between 97 and 125 percent would get 1.05, and areas at or below 97 percent (or outside the United States) would get 1. The Secretary of Commerce would publish a yearly cost-of-living index for each metropolitan area and for the non-metropolitan part of each state, and the Treasury Secretary would set the multipliers by December 15 each year.

Full text and official record on Congress.gov

Sponsors

• Laura Gillen Democrat sponsor
• 1 cosponsors