WASHINGTON, D.C. – In 2025, the Ways and Means Committee delivered historic tax relief for workers, families, farmers, and small businesses. The Working Families Tax Cuts, passed by Congressional Republicans and signed into law by President Trump on July 4th, delivered massive wins for working-class Americans – including tipped and hourly workers. The new tax relief provided pro-growth policies to help small businesses and manufacturers grow, hire, and invest in their communities, and stopped foreign governments from stealing American tax revenues and illegal immigrants from receiving tax benefits.
Ways and Means Committee Chairman Jason Smith (MO-08) issued the following statement:
“At the outset of this year, American workers, families, farmers, and small businesses were facing a massive tax increase that would have robbed their paychecks of on average 9 weeks’ worth of groceries, forced the sale of their family farms, and driven more of main street out of business. Republicans knew we had to act – and quickly – to provide tax relief and certainty so that American families could breathe easier and businesses could plan a more prosperous future. Under the Working Families Tax Cuts signed into law on July 4th, Republicans not only delivered the largest tax cut in American history but went further – increasing key tax benefits like the child tax credit and the standard deduction, making permanent pro-growth policies like 100 percent immediate expensing – including manufacturing facilities, R&D expensing, the small business deduction, and interest deductibility, and targeted tax relief to help families better afford priorities like child care and education. In the process, we restored integrity to the tax code by closing loopholes that allowed taxpayer benefits to flow to illegal immigrants. When it came to delivering this tax relief, failure was never an option, and thanks to this success, working families will soon see bigger paychecks and the biggest tax refund season ever in 2026.”
Key Policy Achievements:
- Stopped a $1,700 tax increase on families and provided an additional $600 tax cut – including increasing the child tax credit to $2,200 and increasing the standard deduction by $1,500 per family to $31,500.
- Delivered no tax on tips, no tax on overtime pay, no tax on Social Security, no tax on car loan interest – which will increase tipped worker pay by $1,300, hourly worker pay by $1,400, and provide married seniors an extra $12,000 tax deduction.
- Produced tax relief that will increase the average tax refund by $1,000 in 2026 and a total of $91 billion in tax refunds – largest ever.
- Made permanent immediate R&D expensing, 100% immediate expensing and interest deductibility, 100% immediate expensing for new or expanded manufacturing and production structures, and the 20% small business deduction for 30 million small businesses – expected to protect and create 7.2 million jobs, increase wages by $7,200, and create $1.5 trillion in additional small business GDP growth and 1 million new small business jobs annually.
- Increased and made permanent relief from the Death Tax.
- Established Trump Savings Accounts for America’s children and provided $1,000 at birth.
- Expanded 529 education savings accounts, provided tax incentives for K-12 scholarships for low-income students, and grew the Child Care Tax Credit, Child and Dependent Care Credit, Paid Leave Credit, and Adoption Tax Credit.
- Extended the Opportunity Zone Program with new focus on rural areas.
- Ended a foreign government assault on American tax revenues and companies.
- Ended tax credits for illegal immigrants with new across the board Social Security number protections.
- Secured biggest second amendment victory in a century.