Wages continue to grow faster than inflation, which is at the lowest level in nearly five years.

WASHINGTON, D.C. – Ways and Means Committee Chairman Jason Smith (MO-08) issued the following statement after the Bureau of Labor Statistics released its economic data for February: 

“Republicans are focused on making life affordable again for waitresses, welders, seniors, factory workers, and moms and dads throughout the country. Last month, working families began seeing the results of the Working Families Tax Cuts, with tax returns that are on average already up more than 10 percent compared to last year at the same time. While receiving the largest tax refunds on record because of policies like no tax on tips, no tax on overtime, no tax on Social Security, bigger standard deduction, and the larger Child Tax Credit, workers also got more good news last month as hourly earnings increased 0.4 percent and are up 3.8 percent from a year ago. After seeing real wages fall 1.6 percent during the Biden administration, increasing paychecks are good news for working families.”

Key Facts:

• Real Income Is Up: Real wages have increased 1.3 percent since January 2025 compared to a 1.6 percent decline during the Biden presidency.
• Largest Tax Refunds In History: Thanks to the Working Families Tax Cuts, taxpayers are receiving the largest tax refunds ever. Refunds could total almost $4,000 per person, the equivalent of seven months of groceries. Latest IRS data shows tax refunds have increased over 10 percent so far.
• Working-Class Families Can Expect No Federal Income Tax Liability: A family of four with two children earning up to $73,000, taking only the boosted standard deduction and bigger Child Tax Credit, will have no federal income tax liability.  
• Working Families Tax Cuts Boost Economic Growth: The Congressional Budget Office projects the Working Families Tax Cuts will boost both real GDP and private investment as well as lower unemployment.