06.26.26

For Nearly One Year, the Working Families Tax Cuts Law Has Made America Stronger and More Prosperous

Republicans’ Landmark Legislation is Delivering Safer Streets, More Money in Americans’ Pockets, and New Opportunities for Working Families to Get Ahead

OPPOSED BY EVERY SINGLE DEMOCRAT IN CONGRESS, THE WORKING FAMILIES TAX CUTS LAW PREVENTED A $4 TRILLION TAX INCREASE AND CREATED NEW TAX BREAKS FOR WORKING AMERICANS

“As we celebrate our nation’s independence this year, the public can also celebrate new, permanent tax relief, more opportunities, and greater economic prosperity thanks to the enactment of the Working Families Tax Cuts on July 4 last year.” – Senate Finance Committee Chairman Mike Crapo (R-Idaho)

  • “Americans are getting bigger refunds or owing less this tax season…” (The Wall Street Journal: Americans Are Getting Big Tax Cuts, Whether They Know It or Not – 4/15/26)
  • Thanks to Republicans preventing a tax increase on the American people of over $4 trillion, tax filers in every income bracket saw lower rates. (U.S. Senate Committee on Finance: Working Families Tax Cuts – accessed 6/26/26; U.S. Senate Committee on Finance: Working Families Tax Cuts Bring Bigger Paychecks – 1/16/26)
  • “[The] Working Families Tax Cuts delivered the largest share of tax relief directly to millions of low- and middle- income Americans...” (U.S. Department of the Treasury: New Analysis: The Working Families Tax Cuts Delivers the Largest Share of Tax Relief to American Families and Workers – 6/2/26)
  • Every single Democrat voted against this historic tax relief, and they continue to call the Working Families Tax Cuts law a “scam.” (H.R. 1: Roll Call Vote #372 – 7/1/25; Senate Democrats: Leader Schumer Floor Remarks Slamming President Trump’s Disastrous Tax Polices Ahead Of His Visit To Las Vegas – 4/16/26)
  • “Nearly every person who filed taxes this year received a tax cut, coming to a whopping $82 billion in relief, according to the Treasury Department.” (New York Post: Almost every US tax filer got a cut this year, coming to $82B in relief: Treasury Department – 6/2/26)
  • “Data released Tuesday showed 97% of filers scored a cut…” (New York Post: Almost every US tax filer got a cut this year, coming to $82B in relief: Treasury Department – 6/2/26)
  • “Filers making less than $100,000 per year made up:
    • “90 percent of people claiming the tax deduction for tipped wages”
    • “75 percent of people claiming the overtime deduction”
    • “62 percent of people claiming the deduction for the interest on loans for American-made cars”
    • “68 percent of people claiming an enhanced deduction for seniors” (The Washington Post: Treasury Dept. says most filers claiming Trump tax breaks on tips, overtime made below $100,000 – 6/2/26)

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(The Washington Post: Treasury Dept. says most filers claiming Trump tax breaks on tips, overtime made below $100,000 – 6/2/26)

MILLIONS OF AMERICANS BENEFITTED FROM THE LAW’S TAX CUT PROVISIONS, INCLUDING NO TAX ON TIPS AND OVERTIME, THE ENHANCED SENIOR DEDUCTION, DOUBLED CHILD TAX CREDIT, AND DOUBLED STANDARD DEDUCTION

  • No Tax on Overtime: “Over 29 million filers deducted no-tax-on-overtime pay, trimming an average of $3,100 from their bills.” (New York Post: Almost every US tax filer got a cut this year, coming to $82B in relief: Treasury Department – 6/2/26)
  • No Tax on Tips: “More than 7.5 million workers claiming the no-tax-on-tips break, a key promise from Trump’s 2024 campaign, wiped an average of $7,000 off their taxable income.” (New York Post: Almost every US tax filer got a cut this year, coming to $82B in relief: Treasury Department – 6/2/26)
  • Doubled Standard Deduction: “Over 127 million filers (90% of all tax filers) have claimed the permanently doubled standard deduction, simplifying tax filing for millions across America.” (U.S. Department of the Treasury: New Analysis: The Working Families Tax Cuts Delivers the Largest Share of Tax Relief to American Families and Workers – 6/2/26)
  • Enhanced Senior Deduction: “Over 35 million seniors have claimed the Enhanced Deduction for Seniors, with an average deduction of over $7,500.” (U.S. Department of the Treasury: New Analysis: The Working Families Tax Cuts Delivers the Largest Share of Tax Relief to American Families and Workers – 6/2/26)
  • Enhanced Child Tax Credit: “Nearly 40 million families have claimed the enhanced Child Tax Credit, which is permanently doubled and expanded by the Working Families Tax Cuts.” (U.S. Department of the Treasury: New Analysis: The Working Families Tax Cuts Delivers the Largest Share of Tax Relief to American Families and Workers – 6/2/26)

SMALL BUSINESSES AND YOUNG PEOPLE ALSO BENEFITTED GREATLY FROM THE TAX PROVISIONS AND NEW OPPORTUNITIES TO BUILD THE FUTURE THEY WANT

  • The Working Families Tax Cuts law drives growth in the economy by incentivizing investment in small businesses, including:
    • “Permanent small business deduction, enabling job creation and spurring local economic activity.”
    • “Full expensing for new capital investments, like machinery and equipment, to boost domestic production.”
    • “Full expensing for new factories and factory improvements to accelerate domestic manufacturing.”
    • “Restor[ing] interest deductibility to a globally competitive standard to help finance critical domestic investments.” (U.S. Senate Committee on Finance: Working Families Tax Cuts – accessed 6/26/26)
  • Trump Accounts: “Over 5.5 million Trump Accounts have been opened, with 1.4 million eligible for the $1,000 pilot program contribution.” (U.S. Department of the Treasury: New Analysis: The Working Families Tax Cuts Delivers the Largest Share of Tax Relief to American Families and Workers – 6/2/26)
  • 529 Savings Accounts: The law widened the scope of qualified expenses on which funds can be used and increased the accounts’ annual expense limit from $10,000 to $20,000: (U.S. Senate Committee on Finance: Expanding Educational Opportunity and Affordability – accessed 6/26/26; Fortune: New 529 plan rules let Gen Z invest in careers, not just college—and it reflects a seismic shift in education – 7/28/25)
    • “The latest amendments to 529 plans are transformative, expanding them into tax-free savings accounts for a range of K-12 expenses, job-training, workforce-development and even disability-related costs… these accounts can be used to cover tutoring, vocational training in skilled trades such as plumbing and welding, professional licensing, credential programs and continuing education.” (The Wall Street Journal: op-ed: The 529 Education Revolution Is Here – 6/27/25)
  • Pell Grants: Increases funding and expands eligibility to students in workforce training programs, opening up more opportunity for those pursuing non-traditional college education:
    • Provides “$10.5 billion in additional Pell Grant funding to prevent a shortfall.” (The Wall Street Journal: Tax Cuts, Student Loans, Medicaid: What’s in the GOP’s Megabill – 7/3/25)
    • “Creates Workforce Pell grants so that workers can take advantage of short-term programs that provide the skills needed for in-demand jobs.” (U.S. Senate Committee on Health, Education, Labor & Pensions: President Trump, Republicans Deliver Historic Wins in One Big Beautiful Bill, Reforming America’s Broken Higher Education System – 8/1/25)

REPUBLICANS ALSO INCLUDED A TRANSFORMATIVE $50 BILLION FUND TO SUPPORT RURAL HOSPITALS AND WORKERS

  • “[A]pproximately 60 million people in the United States—20% of the population… live in rural communities and rely on rural hospitals for their health care.” (Bipartisan Policy Center: Rural Hospitals and the Rural Health Transformation Program: What Comes Next – 7/10/25)
  • Republicans created a $50 billion Rural Health Transformation program for all 50 states “to strengthen and modernize health care in rural communities across the country.” (Centers for Medicare & Medicaid Services: CMS Announces $50 Billion in Awards to Strengthen Rural Health in All 50 States – 12/29/25)
  • “This unprecedented investment is designed to empower states to transform the existing rural health care infrastructure and build sustainable health care systems that expand access, enhance quality of care, and improve outcomes for patients.” (Centers for Medicare & Medicaid Services: CMS Launches Landmark $50 Billion Rural Health Transformation Program – 9/15/25)
  • “Another prominent theme was the need to strengthen the rural health workforce through both recruitment and retention strategies.” (State Health & Value Strategies: Innovating and Investing in Rural Health: How States Propose Spending the $50 Billion Rural Health Transformation Fund – 12/12/25)
  • “[D]isbursements for states are between $145 million and $281 million for 2026...” (Politico: Trump admin doles out billions for rural health – 12/29/25)

REPUBLICANS MADE ELIMINATING WASTE, FRAUD, AND ABUSE A TOP PRIORITY – PUTTING THE COUNTRY ON A STRONGER FISCAL TRAJECTORY

  • Republicans’ Working Families Tax Cuts enacted several policies to protect taxpayer money and maintain the integrity of government programs:
    • Established new Medicaid work requirements, which better target the program to those in need and now require those who can work to do so to be eligible for government assistance. (U.S. Senate Committee on Finance: Crapo Highlights Tax Wins for Hardworking Americans and Main Street – 6/28/25)
    • Protected the federal taxpayer from state financing gimmicks and loopholes, like the provider tax, that ballooned the cost of Medicaid by inflating costs. (U.S. Senate Committee on Finance: Crapo Highlights Tax Wins for Hardworking Americans and Main Street – 6/28/25; The New York Times: G.O.P. Targets a Medicaid Loophole Used by 49 States to Grab Federal Money – 5/10/25; Center for Medicare and Medicaid Services: CMS Moves to Shut Down Medicaid Loophole—Protects Vulnerable Americans, Saves Billions – 5/12/25)
    • Strengthened eligibility verification for Medicaid by ensuring deceased individuals do not remain enrolled, addressing duplicate enrollment and requiring states to check certain enrollees’ eligibility twice a year. (U.S. Congress: H.R.1 – accessed 6/26/26)
    • Required states to remove more quickly ineligible people from the Medicaid rolls. (U.S. Congress: H.R.1 – accessed 6/26/26)
    • Refocused Medicaid, Medicare and Obamacare subsidies to American citizens. (U.S. Congress: H.R.1 – accessed 6/26/26)
    • Required “the [Obamacare] exchange to verify Social Security numbers and income data before enrolling applicants in plans.” (The Wall Street Journal: Editorial: ObamaCare Is a Mecca for Fraud – 12/9/25)
    • “It also requires people to repay the government if their incomes turn out to be higher than what they estimated on their applications. The Congressional Budget Office projected that the tax bill’s ObamaCare fraud controls could result in about one million more people going uninsured, but most aren’t eligible for subsidies—and some might not even exist.” (The Wall Street Journal: Editorial: ObamaCare Is a Mecca for Fraud – 12/9/25)
  • The law also enacted new rules to ensure SNAP benefits are there for the program’s intended recipients:
    • “Strengthen[ed] SNAP work requirements for able-bodied adults by increasing the age that able-bodied adults must continue working from 54 through 64.”
    • “Include[d] parents of children at or over the age of 14, as these adults can reasonably work, volunteer, or seek education and training while their children are at school.”
    • “Limit[ed] the ability of States to arbitrarily waive work requirements by restricting waivers to only areas with high unemployment.” (U.S. Senate Committee on Agriculture, Nutrition, & Forestry: Chairman Boozman Releases Updated Agriculture, Nutrition, and Forestry Budget Reconciliation Text – 6/25/25)