On July 21, Senator Grassley introduced S. 4589, Middle-Class Savings and Investment Act. It aims to add a few inflation adjustments to dollar amounts in the tax law that are not adjusted for inflation. The ones selected seem aimed at low to middle income taxpayers. These adjustments would be for:
1. $2,000 child tax credit
2. $500 other dependent credit
3. Education costs in the American Opportunity Tax Credit and Lifetime Learning Credit (currently, only the income thresholds for inflation are adjusted for inflation).
4. Student loan interest deduction.
He would pay for this by extending the $10,000 SALT cap for one more year (through 2026).
See Senator Grassley’s press release about the bill.