WASHINGTON, D.C. – Ways and Means Committee Chairman Jason Smith (MO-08) issued the following statement after the U.S. Bureau of Economic Analysis announced that the U.S. economy grew by 4.3 percent in the third quarter of 2025 – soundly beating expectations from outside experts as well as the Congressional Budget Office (CBO), further helping address the nation’s fiscal health as well. Every additional 1 percent of sustained gross domestic product (GDP) growth above CBO projections is estimated to result in $600 billion in new tax revenues over five years and $2.8 trillion over 10 years.

“The first GDP report to come after Republicans passed and President Trump signed into law the Working Families Tax Cuts shows America’s economy roaring back as working families continue to dig out from underneath the horrendous mess that was the Biden Administration. This is yet another sign that pro-worker, pro-small business policies are already producing stronger economic growth that will create more opportunities and prosperity for families in communities all across the country. As 2025 comes to a close, Americans are looking toward a new year that – thanks to Republican tax relief – will deliver higher wages and bigger tax refunds. Lower withholdings starting in January will mean more money in the paychecks of working families. Tax refunds are projected to grow by $91 billion and could increase by $1,000 per refund next year. The pro-growth policies we enacted will also encourage small businesses and manufacturers to continue investing here at home and creating more good-paying jobs.”

The Working Families Tax Cuts Fuel Economic Growth and Bigger Paychecks:

• Estimated to boost real gross domestic product (GDP) by 4.6 to 4.9 percent in the next four years and by 2.4 to 2.7 percent long-term while protecting and creating over 7 million jobs.
• 100 percent Immediate Expensing, R&D Expensing, and 100 percent Expensing for manufacturing structures combined will increase investment by 7 percent and annual wages by $1,600.
• Projected to unlock $1.5 trillion in additional small business GDP growth and an estimated 1 million new small business jobs annually over the next decade.
• Taxpayers will get an average $600 tax cut beyond what they currently pay today.
• No tax on tips provides an average $1,300 tax cut.
• No tax on overtime delivers an average $1,400 tax cut.
• Married seniors will get a $12,000 deduction for their Social Security benefits.
• The Child Tax Credit expands to $2,200 and is permanently indexed for inflation, so the credit never loses value.
• The standard deduction is increased by $1,500 per family to $31,500.
• Raises annual real wages by $7,200 per worker.
• Increases annual take-home pay for a typical family with two children by $10,900.

Click here to learn more about how the Working Families Tax Cuts will benefit the American people and power a stronger economy.