CONGRESS OF THE UNITED STATES OF AMERICA

Personal Income Tax Relief Act

Section 1: Short Title
This Act may be cited as the "Personal Income Tax Relief Act.

Section 2: No Federal Income Tax on First $50,000 of Earned Income
(a) In General - Subsection (a) of section 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: "For taxable years beginning after December 31, 2023, the amount of taxable income not exceeding $50,000 shall be exempt from taxation under this subtitle."

(b) Inflation Adjustment - Section 1(f)(3) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

(D) Adjustment for inflation - In the case of taxable years beginning after December 31, 2024, the $50,000 amount in subsection (a) shall be increased by an amount equal to the cost-of-living adjustment determined under section 1(f)(3) for such taxable year, determined by substituting 'calendar year 2023' for 'calendar year 1992' in subparagraph (B) thereof."

Section 3: Effective Date
The amendments made by this Act shall apply to taxable years beginning after December 31, 2023.

Section 4: Budgetary Effects
The Congressional Budget Office shall estimate the budgetary effects of this Act in accordance with section 402 of the Congressional Budget Act of 1974.

Section 5: Severability
If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the remainder of the Act and the application of such provision to other persons or circumstances shall not be affected thereby.

Section 6: Enactment
This Act shall take effect upon its enactment into law.