WASHINGTON, D.C. – In its latest economic projections, the Congressional Budget Office (CBO) attributes stronger growth to the Working Families Tax Cuts. This is the second time that the congressional scorekeeper revised upwards its expectations for economic growth following passage of the Republican signature tax bill that included no tax on tips, no tax on overtime, no tax on Social Security, and pro-growth policies to support small business investment, growth, and job creation and domestic manufacturing.

Ways and Means Committee Chairman Jason Smith (MO-08) said:

“Americans are already receiving larger paychecks thanks to the Working Families Tax Cuts, but these projections show the best is yet to come. Even CBO is feeling more optimistic, with its second report in a row revising upwards its expectations for our economy, with more hiring and bigger paychecks in 2026. These projections show why it was crucial to design tax cuts that invest in America’s workers, farmers, families, and U.S. manufacturing, and to do so long before the end of 2025. Thanks to President Trump and Congressional Republicans passing this historic tax relief, Americans can look forward to a record setting tax refund season this year.”

CBO’s latest report finds growth of real gross domestic product (GDP) during 2026 and 2027 “as the 2025 reconciliation act spurs additional economic activity.” In the two years after that, CBO finds that “growth is supported by increases in the labor supply and in investment that result from the 2025 reconciliation act and by the positive effects on productivity stemming from the adoption of generative artificial intelligence.”

From September: Even CBO Now Forecasts More Economic Growth Thanks to 2025’s Working Families Tax Cuts