Middle Class Savings Act

The Middle Class Savings Act adjusts the income thresholds that determine tax rates for capital gains, raising the income levels at which higher tax rates apply. Specifically, it increases the breakpoints for all income brackets - such as raising the threshold from $77,200 to $103,350 for the lowest bracket - so more taxpayers with capital gains income will pay lower tax rates. This change directly affects individuals and households earning capital gains income who fall within these adjusted income ranges. The policy modifies how capital gains are taxed under current law, applying the same income brackets used for regular income to capital gains tax calculations. The amendments take effect for taxable years beginning after December 31, 2024.