US HB7303

Increases the standard deduction from $4,400 to $75,000 for married couples filing jointly and from $3,000 to $50,000 for single filers, effective for tax years beginning after December 31, 2025

Replaces the current seven-bracket income tax system with a five-bracket structure featuring rates of 25%, 30%, 40%, 50%, and 70%

Sets the top 70% marginal rate to apply to taxable income over $2,000,000 for joint filers, $1,500,000 for heads of household, and $1,000,000 for single filers

Repeals the reduced tax rates on capital gains, requiring capital gains to be taxed as ordinary income

Introduced by Rep. Thanedar on January 30, 2026, and referred to the House Committee on Ways and Means