Metro Lex News

Today, U.S. Congressman Andy Barr (KY-06) reintroduced the Middle Class Savings Act, aiming to modernize the federal tax code. The proposed legislation seeks to align and lower capital gains tax bracket thresholds with current income tax brackets, addressing what Congressman Barr describes as a disparity due to outdated income thresholds.

According to Barr, inflation has caused many middle-class taxpayers to be pushed into higher capital gains tax brackets, even when their overall income is modest. "The tax code shouldn’t punish middle-class families for doing the right thing—saving, investing, and planning for the future," Barr said. "This bill brings fairness to the system and ensures working Americans aren’t hit with higher taxes simply because Washington hasn’t kept up with inflation."

The initiative has garnered support from various taxpayer advocacy groups. Brandon Arnold, Executive Vice President of the National Taxpayers Union, expressed approval: "National Taxpayers Union is pleased to support Rep. Andy Barr's Middle Class Savings Act, which will effectively reduce capital gains tax rates for millions of Americans. This bill would not only provide much needed tax relief, it would also encourage taxpayers to invest more at a time when personal savings rates continue to lag. We urge Congress to swiftly pass this important, pro-taxpayer bill."

Grover Norquist, President of Americans for Tax Reform, also endorsed the bill. "Congressman Barr should be applauded for introducing the Middle Class Savings Act, legislation that will cut capital gains taxes and make it easier for American families and individuals to invest and save. This legislation builds on the success of the Tax Cuts and Jobs Act and should be supported by all lawmakers," he said.

The Middle Class Savings Act is part of Congressman Barr’s wider initiative to improve economic opportunities and financial security for American families. By encouraging savings and long-term investment, the legislation supports retirement planning and wealth-building.