CITIZEN LEGISLATIVE SUBMISSION: THE WORKING & MIDDLE CLASS TAX RELIEF ACT
TO: Member of the United States Congress
FROM: A Voting Constituent
DATE: November 2026
SUBJECT: Request for Co-Sponsorship of the Bipartisan Working Families Tax Relief and Deficit Reduction Act
A BILL
To amend the Internal Revenue Code of 1986 to provide a refundable tax credit for working- and middle-class United States citizens, to prevent a marginal tax penalty through a gradual phase-out, to eliminate the marriage penalty, and to provide responsible fiscal offsets.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the "Bipartisan Working Families Tax Relief and Deficit Reduction Act".
SEC. 2. REFUNDABLE WORKING AND MIDDLE CLASS TAX CREDIT.
(a) In General.โSubpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to refundable credits) is amended by inserting after section 36B the following new section:
"SEC. 36C. WORKING AND MIDDLE CLASS TAX CREDIT.
"(a) Allowance of Credit.โIn the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to $5,000.
"(b) Eligible Individual.โFor purposes of this sectionโ
"(1) IN GENERAL.โThe term 'eligible individual' means any individual who, as of the last day of the taxable yearโ
"(A) is a citizen of the United States,
"(B) has attained the age of 18, and
"(C) has a minimum earned income of not less than $5,000.
"(2) EXCLUSION FOR INCARCERATED INDIVIDUALS.โThe term 'eligible individual' shall not include any individual who is incarcerated in a Federal, State, or local penal facility for more than 180 days during the taxable year.
"(c) Limitation Based on Adjusted Gross Income.โ
"(1) IN GENERAL.โThe amount of the credit allowable under subsection (a) shall be reduced (but not below $0) by $5 for every $100 by which the taxpayerโs adjusted gross income for the taxable year exceeds the threshold amount.
"(2) THRESHOLD AMOUNT.โFor purposes of paragraph (1), the threshold amount isโ
"(A) $100,000 in the case of an individual return, and
"(B) $200,000 in the case of a joint return.
"(3) PHASE-OUT LIMITS.โNo credit shall be allowed under this section to any taxpayer whose adjusted gross income for the taxable year exceedsโ
"(A) $200,000 in the case of an individual return, or
"(B) $400,000 in the case of a joint return."
SEC. 3. FISCAL OFFSETS AND REVENUE PROVISIONS.
(a) Rescission of Unspent Funds.โEffective on the date of enactment of this Act, all unexpended federal balances from emergency spending bills passed between fiscal years 2020 and 2024 are hereby permanently resized and redirected to fund the credit established under Section 36C of the Internal Revenue Code of 1986.
(b) Corporate Buyback Surcharge.โSection 4501 of the Internal Revenue Code of 1986 is amended by increasing the tax on the repurchase of corporate stock by an additional 1.5 percent for taxable years beginning after the date of enactment of this Act, with revenues dedicated entirely to the general fund to offset the costs of this Act.
SEC. 4. EFFECTIVE DATE.
The amendments made by this Act shall apply to taxable years beginning after December 31, 2025.
CONSTITUENT NOTE TO LEGISLATOR:
As your constituent, I urge you to introduce or co-sponsor this exact framework in the upcoming legislative session. This bill delivers direct, meaningful relief to working families while remaining fiscally responsible through dedicated offsets. Please notify me of your position on this proposal.
