Kincaid for Congress – Washington’s 1st District

No Federal Income Tax or Tax Filing for People Earning $61,000 or Less Summary This proposal would eliminate federal individual income tax liability for people earning $61,000 or less in total wage income, simplifying the tax system for tens of millions of working Americans while having minimal impact on federal revenue. In practical terms, anyone earning approximately $29.33 per hour or less would pay zero federal income tax and would no longer be required to file a tax return each year. Payroll taxes  Social Security and Medicare would still be deducted from paychecks as they are today. Beyond that, nothing. No additional federal tax withheld. No annual filing requirement. Rationale Based on IRS data from the past decade (2013–2022), households earning $61,000 or less make up approximately 50 to 60 percent of all U.S. tax filers. Yet this group contributes only 2 to 3 percent of all federal individual income tax revenue roughly $53 to $79 billion per year, depending o...