## Legislative bill overview

The bill HR 139 aims to amend the Internal Revenue Code to provide tax relief for individuals and families by increasing the standard deduction and expanding the child tax credit. The proposed changes would raise the standard deduction to $15,000 for individuals and $30,000 for married couples filing jointly, as well as increase the child tax credit to $3,000 per child, with additional benefits for children under the age of six.

## Why is this important

This bill is significant as it seeks to alleviate the tax burden on middle and lower-income families, potentially stimulating economic activity by increasing disposable income. By raising the standard deduction and enhancing the child tax credit, the bill aims to simplify the tax filing process and reduce the number of individuals who itemize deductions, which could lead to a more efficient tax system.

## Potential points of contention

• Increased government spending may result from expanded tax credits, raising concerns about budget deficits.


• The bill could disproportionately benefit higher-income families who may have multiple children, leading to equity issues.


• Potential loss of revenue for state and local governments if federal tax changes influence local tax structures.


• Critics may argue that the bill does not address broader systemic issues within the tax code, such as corporate tax loopholes.