Sen. Cory Booker, D-N.J., facing a re-election campaign in 2026, announced a new tax-cut bill, the Keep Your Pay Act, that would eliminate federal income taxes on the first $75,000 of income for most households and expand key tax credits for working families.
Booker’s plan increases the standard deduction to $75,000 for married couples filing jointly, with proportional relief for single filers and heads of household, reducing federal income tax on the median American family by an estimated 85%.
“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 — so we need big ideas to start making the American Dream possible for everyone again,” Booker wrote in a statement unveiling his bill. “No income tax on the first $75,000 families earn would be a game changer for working people.”
“This tax cut would immediately put more money in your pocket every month to deal with the high price of everyday expenses, an unexpected emergency, or to plan for the future,” he added.
THUNE PROMISES ‘SAFE STREETS, MORE MONEY IN POCKETS’ AS GOP SENATORS HIT THE ROAD TO TOUT TAX CUTS
Booker, who has been rumored to be considering a 2028 presidential run, noted the pay-for in his bill would fully offset costs by generating more tax revenue from corporations and wealthy individuals. The plan includes raising the corporate tax rate, increasing taxes on stock buybacks, tightening executive compensation deductions and strengthening corporate tax enforcement.
“This plan can be fully paid for by unrigging our tax system – so that the wealthiest few and the biggest corporations that are getting rich by keeping prices high finally start paying their fair share,” Booker’s statement added. “This idea will ensure Americans who work for a living keep more of their paychecks, help restore tax fairness, and start making America a country where working people can get ahead again.”
The legislation also calls for expanding the Child Tax Credit to $3,600 per child ages 6 to 17 and $4,320 for children under 6, along with a $2,400 “baby bonus” in the year of a child’s birth. The credit would be fully refundable. In addition, the plan would expand the Earned Income Tax Credit by tripling its value and broadening eligibility to include workers ages 19 to 24 and 65 and older without children at home.
Booker also launched an online calculator to allow individuals to estimate their potential tax savings under the proposal.
The senator has previously championed expansions of the Child Tax Credit and Earned Income Tax Credit, including provisions enacted temporarily under the 2021 American Rescue Plan, which studies found significantly reduced child poverty.
While Booker is in an election year, Cook Political Report has his New Jersey Senate seat as safe, rating it as one of the nine solid Democrat Senate seats on the 2026 midterm map. Republicans narrowly hold the Senate majority going into the midterms with 53 seats to 45 Democrats and two independents that caucus with them.
Democrats’ designs on flipping the Senate will come in battleground races in Alaska, Georgia, Maine, Michigan and Ohio. While Republicans could potentially target a “lean Democrat” seat in New Hampshire, where former Sen. John E. Sununu, R-N.H., has announced a run.
The New Jersey deadline for filing for the Senate primary is March 23. The primary is June 2.
The top Republican names in New Jersey include former New Jersey State Trooper Richard Tabor and former reporter Alex Zdan.
