This legislation, known as the Middle Class Savings Act , proposes significant changes to the Internal Revenue Code of 1986 concerning capital gains taxation. Its primary goal is to align the breakpoints for capital gains tax brackets more closely with current income tax bracket thresholds. Specifically, the bill amends Section 1(j)(5)(B) by increasing several key dollar amounts that define the various capital gains tax rate tiers. By raising these thresholds, a larger portion of an individual's capital gains income would qualify for lower tax rates, potentially resulting in reduced tax liabilities for many taxpayers. These adjustments are slated to take effect for all taxable years commencing after December 31, 2024 .