04.14.26

Republicans Are Putting More Money In People’s Pockets

This Tax Season, Thanks to Republicans’ Working Families Tax Cuts Law, Americans Are Getting Higher Tax Refunds Than Previous Years

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THIS YEAR, AMERICANS ARE RECEIVING HIGHER TAX REFUNDS THANKS TO REPUBLICANS’ WORKING FAMILIES TAX CUTS LAW

“At the core of the Working Families Tax Cuts law is its prevention of a $4 trillion tax hike, paired with permanently lowered rates to spur economic growth. The law also extended and expanded a swath of deductions and tax credits to help Americans withstand the Biden-created affordability crisis. That plan is working.” – Senate Finance Committee Chairman Mike Crapo (R-Idaho)

  • “Tax refunds this season are up 24% compared with the four-year average of refunds before President Donald Trump took office, his administration said Thursday - a change credited to Republicans’ tax legislation signed into law last year.” (The Washington Times: IRS touts a 24% increase in tax refunds compared to the previous administration – 4/9/26)
  • Through April 3, the average tax refund this year is $3,462, an 11% increase compared to the same period last year. (Internal Revenue Service: Filing season statistics for week ending April 3, 2026 – accessed 4/14/26)
  • “The IRS data reflects about 99.8 million individual returns received, out of about 164 million expected through the April 15 deadline.” (CNBC: Average tax refund is 11% higher, latest IRS filing data shows – 4/10/26)
  • Last summer, without the support of any Senate Democrats, Republicans passed the Working Families Tax Cuts law, preventing a tax increase on the American people of over $4 trillion. (H.R. 1: Roll Call Vote #372 – 7/1/25; U.S. Senate Committee on Finance: Working Families Tax Cuts – accessed 4/14/26)
  • “[B]ecause the IRS did not adjust withholding tables after the law passed, workers generally continued to withhold more taxes from their paychecks than the new law required. As a result, instead of gradually receiving the benefit of the tax cuts through higher take-home pay during the year, most taxpayers will receive it all at once when they file their returns.” (Tax Foundation: Tax Refunds and the One Big Beautiful Bill Act – 1/15/26)

NEW PROVISIONS SUCH AS NO TAX ON TIPS, NO TAX ON OVERTIME, AND THE SENIOR BONUS TAX DEDUCTION ARE MAKING A REAL DIFFERENCE FOR AMERICANS’ WALLETS

  • “During a March 4 House Ways and Means Committee hearing, Frank Bisignano, Social Security Administration commissioner and IRS CEO, said filers claiming Trump’s new tax breaks were already seeing average refunds that were $775 higher than last year.” (CNBC: Not everyone can expect a bigger tax refund this year — what’s actually driving your result – 3/29/26)
    • “These returns have included the new Schedule 1-A, which feeds into individual tax returns, and covers Trump’s new deductions for tip income, overtime earnings, seniors and auto loan interest.” (CNBC: Not everyone can expect a bigger tax refund this year — what’s actually driving your result – 3/29/26)
  • “Treasury Secretary Scott Bessent touted the Trump administration’s tax deductions for tipped wages and overtime pay Friday, revealing that nearly 30 million Americans have taken advantage of the new policy.” (New York Post: 30 million have taken advantage of Trump’s ‘No Tax on Tips, Overtime’ policies, Treasury Secretary Bessent says – 4/10/26)
    • “Bessent, addressing small business owners in the Hudson Valley with Rep. Mike Lawler (R-NY), said 5.7 million taxpayers had filed for ‘No Tax on Tips.’” (New York Post: 30 million have taken advantage of Trump’s ‘No Tax on Tips, Overtime’ policies, Treasury Secretary Bessent says – 4/10/26)
    • “Another 23 million filed for ‘No Tax on Overtime,’ according to the Treasury secretary, who described the new overtime rule as ‘the biggest one.’” (New York Post: 30 million have taken advantage of Trump’s ‘No Tax on Tips, Overtime’ policies, Treasury Secretary Bessent says – 4/10/26)
  • “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)
    • According to AARP, the $6,000 tax deduction for seniors would put “an average of about $670 more in their pockets this year.” (CBS News: How the new $6,000 senior tax deduction could affect millions of Americans over 65 – 1/15/26)
    • “‘In focus groups last fall, we heard about people still working long after they thought they'd be retired,’ [Nancy LeaMond, AARP’s chief advocacy and engagement officer] said. ‘Sometimes in the world we live in, $600 doesn't sound like a lot, but we can tell you, based on conversations with our members, that it is a very, very significant help to them.’” (CBS News: How the new $6,000 senior tax deduction could affect millions of Americans over 65 – 1/15/26)

ALL IN ALL, REPUBLICANS’ LANDMARK LAW PRIMARILY HELPS WORKING FAMILIES KEEP MORE OF THEIR HARD-EARNED MONEY AND CREATES NEW OPPORTUNITIES FOR THEM TO GET AHEAD

  • “According to a distributional analysis from the nonpartisan Joint Committee on Taxation (JCT)—which previously estimated the tax bill provides more than $600 billion in new tax relief to middle-class households—the largest proportional tax benefits go to workers and families making less than $50,000.”

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(U.S. Senate Committee on Finance: New Tax Relief in One Big Beautiful Bill Overwhelmingly Benefits Working Class – July 2025)

  • “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)
  • 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)
  • “The Trump accounts coming this summer let parents jump-start tax-advantaged retirement savings for a child at birth. By the time the kids retire, they could end up with giant retirement accounts.” (The Wall Street Journal: The Hack That Turns Trump Accounts Into Multimillion-Dollar Tax-Free Nest Eggs – 3/23/26)
    • “As of mid-March, parents and guardians had signed up roughly four million children for the accounts, with more than 800,000 of them eligible for the $1,000 seed money, according to the Treasury Department.” (The Wall Street Journal: The Hack That Turns Trump Accounts Into Multimillion-Dollar Tax-Free Nest Eggs – 3/23/26)
    • 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)