The Working Families Tax Cuts made the 2017 Trump tax cuts permanent, including tax relief for families, workers, small businesses, and manufacturers.

WASHINGTON, D.C. – Ways and Means Committee Chairman Jason Smith (MO-08) issued the following statement celebrating the eighth anniversary of the Tax Cuts and Jobs Act – the successful 2017 Trump tax cuts which were made permanent earlier this year as part of the Working Families Tax Cuts:

“The 2017 Trump tax cuts delivered strong economic growth, job creation, and higher wages for American workers, families, farmers, small businesses, and manufacturers. The Working Families Tax Cuts built on that success by making these tax cuts permanent, and delivering new tax relief for working families – including no tax on tips, no tax on overtime, no tax on Social Security, a bigger Child Tax Credit and standard deduction. After the 2017 Trump tax cuts, real incomes grew by nearly five percent, workers at the bottom had a higher wage growth than those at the top, and the U.S. economy grew a full percentage more than originally projected. The Working Families Tax Cuts promise to restore an economy that can deliver more jobs, more investment, and economic growth – including bigger paychecks and record tax refunds starting in the new year. 

“Had Democrats gotten their way, working families would be bracing today for the largest tax hike in U.S. history. Because Republicans delivered the Working Families Tax Cuts, workers can now look forward to higher wages and more money in their pockets to take care of their families – including education, health care, and child care expenses. Family farmers can pass their business to the next generation, and Main Street businesses and manufacturers can invest, grow, and hire more in their communities to deliver a new season of opportunity.”

The Working Families Tax Cuts Put More Money in Americans’ Pockets

• The 2026 tax refund season is expected to be the largest in U.S. history, with families getting up to $1,000 more in their refund checks.
• On average, 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 is expanded to $2,200 and permanently indexed for inflation, so the credit never loses value.
• The standard deduction is increased by $1,500 per family to $31,500.
• Every newborn child will receive a one-time contribution of $1,000 to start a private investment account that promotes long-term savings. 
• Expands 529 savings accounts to help families choose education that best fits their needs, including tutoring, standardized test prep, and assistance for children with disabilities. 
• New incentives for billions of dollars in private charitable donations to fund scholarships for low-income students for K-12 educational expenses. 
• Working Families Tax Cuts protects and creates 7 million jobs, including 1 million annually from small businesses alone. 

The Working Families Tax Cuts Power Made in America Boom

• 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.
• 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. 

Click here to see how the Working Families Tax Cuts benefits the American people.