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REPUBLICANS’ LANDMARK WORKING FAMILIES TAX CUTS LAW IS PUTTING MORE MONEY IN AMERICANS’ POCKETS AND CREATING NEW OPPORTUNITIES TO GET AHEAD
- Thanks to Republicans’ Working Families Tax Cuts law, this year, the average tax filer will receive a federal tax cut of $3,750. (U.S. Department of the Treasury: Working Families Tax Cuts – accessed 3/31/26)
- Individuals making less than $50,000 per year are receiving the largest proportional benefit of Republicans’ tax cuts. (U.S. Senate Committee on Finance: One Big Beautiful Bill: New Tax Relief Overwhelmingly Benefits Working Class – 7/1/25)
- “President Donald Trump’s new tax deduction for overtime looks like a hit this filing season, and that’s shaping up to be a big challenge for Democrats. Nearly 20 million taxpayers so far have claimed the break, internal Treasury data shows.” (Politico: Trump’s overtime tax break is a hit. Democrats aren’t sure what to do about it. – 3/31/26)
- “So far, the administration says the overtime deduction, which allows couples to deduct up to $25,000, has shown up on about 23 percent of returns. About 17 percent of taxpayers have claimed a new $6,000 per-person deduction for seniors.” (Politico: Trump’s overtime tax break is a hit. Democrats aren’t sure what to do about it. – 3/31/26)
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- “A single adult, making $75,000, of which $10,000 is qualified overtime: Tax cut of $4,192” (U.S. Senate Committee on Finance: Working Families Tax Cuts Bring Bigger Paychecks – 1/16/26; Tax Foundation: 2026 Tax Calculator: How the One Big Beautiful Bill Act’s Tax Changes Will Affect You – 10/1/25)
- The Working Families Tax Cuts also created new opportunities for workers, including no tax on tips:
- “A single adult, making $30,000, of which $10,000 are qualified tips: Tax cut of $1,462” (U.S. Senate Committee on Finance: Working Families Tax Cuts Bring Bigger Paychecks – 1/16/26; Tax Foundation: 2026 Tax Calculator: How the One Big Beautiful Bill Act’s Tax Changes Will Affect You – 10/1/25)
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- According to the National Restaurant Association, no tax on tips “could return up to $421 million to the pockets of restaurant workers across the country.” (WV MetroNews: Capito meets with state restaurant workers about Working Families Tax Cut – 1/25/26)
- “The new tax law also raised and extended the maximum child tax credit to $2,200 per child for 2025, and scheduled future inflation adjustments.” (The Wall Street Journal: Can ‘Trump Accounts’ for Babies Change the Economics of Having a Family? – 12/2/25)
- The law also increases the employer-provided child care credit from $150,000 to $500,000: “All businesses providing employee child care are eligible for a tax credit, and there are expanded benefits for small businesses with less than $31 million in gross receipts for 2025…” (CNBC: Biggest Trump tax cut benefits for small business owners to keep more income on Main Street – 10/5/25)
- Republicans created Trump Accounts, tax-deferred investment accounts that can be opened by any parent with a child under 18 who has a Social Security number. (The Hill: Treasury to hold summit on Trump accounts – 1/25/26)
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- Additionally, “children in the United States with a Social Security number born between Jan. 1, 2025, and Dec. 31, 2028, will be given a stock market account with a one-time $1,000 deposit from the Treasury that will grow similarly to individual retirement accounts, or IRAs.” (The Hill: Treasury to hold summit on Trump accounts – 1/25/26)
MEANWHILE, IN BLUE STATES, DEMOCRATS ARE PROPOSING A SLEW OF NEW TAXES
- “A buoyant stock market and strong capital gains have turbocharged tax revenue in most states, especially those with progressive tax systems. Total tax revenue across the 50 states increased 43% between 2019 and 2025, twice as much as inflation. But Democrats and their public union allies want more—much more.” (The Wall Street Journal: Editorial: Democrats Are on a Taxing Binge – 3/22/26)
- “Believe it or not, [Democrats] are showing across the country that they want to raise taxes.” (The Wall Street Journal: Editorial: Democrats Are on a Taxing Binge – 3/22/26)
- Sens. Cory Booker (D-N.J.) and Chris Van Hollen (D-Md.) both released tax proposals that would raise taxes on businesses and lower GDP: “On net, we estimate both proposals would increase the federal budget deficit and reduce long-run GDP.” (Tax Foundation: Details and Analysis of the Van Hollen and Booker Tax Cut Plans – 3/16/26)
- Virginia: “Despite campaigning on making life more affordable for Virginians, Democratic lawmakers in Richmond introduced more than 50 new taxes and tax increases this month during the General Assembly session.” (WJLA: Virginia Democratic leader responds to outrage about tax increase proposals – 1/30/26)
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- “Taxes on concerts, counseling, electric leaf blowers, Amazon deliveries, Door Dash, Uber Eats, and guns and ammunition are among a flood of proposals the Democratic majority in the Virginia General Assembly introduced.” (WJLA: Virginia Democratic leader responds to outrage about tax increase proposals – 1/30/26)
- California: Many Democrat leaders are supporting a referendum “to impose a 5% wealth tax on residents with more than $1 billion in net worth… The tax would even be levied on illusory assets. Silicon Valley investors who own super-voting shares in a company would be taxed on their voting rights, rather than the value of their shares. A startup founder could be required to pay tax on the 25% of voting rights he controls even if he only owns 5% of shares.” (The Wall Street Journal: Editorial: Democrats Are on a Taxing Binge – 3/22/26)
- Washington: “Democrats have passed a 9.9% income tax on millionaires, despite a state constitutional ban on a graduated income tax. The slippery slope to an income tax began in 2022 when Democrats enacted a 7% tax on capital gains exceeding $250,000, disguised as an ‘excise tax’ on asset sales. Last year they raised the rate to 9.9% on capital gains over $1 million. Now they’re extending the 9.9% tax to all forms of income. Democrats also included a sneaky provision that only adjusts for inflation every other year.” (The Wall Street Journal: Editorial: Democrats Are on a Taxing Binge – 3/22/26)
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- “In the past few years, Democrats in Olympia have raised taxes on real-estate sales, business gross receipts and estates (to 35% from 20%), while extending the state’s 6.5% sales tax to business services.” (The Wall Street Journal: Editorial: Democrats Are on a Taxing Binge – 3/22/26)
- New York: “Albany Democrats are proposing income, corporate and real-estate tax hikes to fund more welfare and public-worker benefits. The Assembly wants to raise the top state-and-local income-tax rate to 15.9% from 14.8%, and the Senate to 15.3%. Democrats also want to raise the state top corporate tax rate and let New York City raise its rate. That would make the top business tax rate nearly 20% in New York City.” (The Wall Street Journal: Editorial: Democrats Are on a Taxing Binge – 3/22/26)