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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9179 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 9179
To amend the Internal Revenue Code of 1986 to provide for adjustments
in the individual income tax rates to reflect regional differences in
the cost-of-living.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 8, 2026
Ms. Gillen (for herself and Mr. Lawler) introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide for adjustments
in the individual income tax rates to reflect regional differences in
the cost-of-living.
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 ``Cost of Living Tax Cut Act''.
SEC. 2. REGIONAL COST-OF-LIVING ADJUSTMENTS IN INDIVIDUAL INCOME TAX
RATES.
(a) General Rule.--Subsection (f) of section 1 of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
paragraphs:
``(9) Regional cost-of-living adjustments.--
``(A) In general.--In the case of an individual,
for taxable years beginning after 2026 the rate table
otherwise in effect under this section for any taxable
year (determined after the application of paragraph
(1)) shall be further adjusted as provided in
subparagraph (B).
``(B) Method of making regional adjustment.--The
rate table otherwise in effect under this section with
respect to any individual for any taxable year shall be
adjusted as follows:
``(i) The minimum and maximum dollar
amounts otherwise in effect for each rate
bracket shall be multiplied by the applicable
multiplier (for the calendar year in which the
taxable year begins) which applies to the
statistical area in which the individual's
primary place of abode during the taxable year
is located.
``(ii) The rate applicable to any rate
bracket (as adjusted by clause (i)) shall not
be changed.
``(iii) The amount setting forth the tax
shall be adjusted to the extent necessary to
reflect the adjustments in the rate brackets.
If any amount determined under clause (i) is not a
multiple of $50, such amount shall be rounded to the
nearest multiple of $50.
``(10) Determination of multipliers.--
``(A) In general.--Not later than December 15 of
each calendar year, the Secretary shall prescribe an
applicable multiplier for each statistical area of the
United States which shall apply to taxable years
beginning during the succeeding calendar year.
``(B) Determination of multipliers.--
``(i) For each statistical area where the
cost-of-living differential for any calendar
year exceeds 125 percent, the applicable
multiplier for such calendar year is 90 percent
of such differential.
``(ii) For each statistical area where the
cost-of-living differential for any calendar
year exceeds 97 percent but does not exceed 125
percent, the applicable multiplier for such
calendar year is 1.05.
``(iii) For each statistical area where the
cost-of-living differential for any calendar
year does not exceed 97 percent (and,
notwithstanding clauses (i) and (ii), in the
case of any statistical area which is outside
the United States), the applicable multiplier
for such calendar year is 1.
``(C) Cost-of-living differential.--The cost-of-
living differential for any statistical area for any
calendar year is the percentage determined by
dividing--
``(i) the cost-of-living for such area for
the preceding calendar year, by
``(ii) the average cost-of-living for the
United States for the preceding calendar year.
``(D) Cost-of-living for area.--
``(i) In general.--For calendar year 2026
and each calendar year thereafter, the
Secretary of Commerce shall determine and
publish a cost-of-living index for each
statistical area.
``(ii) Methodology.--The cost-of-living
index determined under clause (i) for any
statistical area for any calendar year shall be
based on average market prices for the area for
the 12-month period ending on August 31 of such
calendar year. The market prices taken into
account under the preceding sentence shall be
selected and used under the same methodology as
is used by the Secretary of Commerce in
developing Regional Price Parities indexes.
``(E) Statistical area.--For purposes of this
subsection, the term `statistical area' means--
``(i) any metropolitan statistical area as
defined by the Secretary of Commerce, and
``(ii) the portion of any State not within
a metropolitan statistical area as so
defined.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2026.
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