WASHINGTON, D.C. – Ways and Means Tax Subcommittee Chairman Mike Kelly (PA-16) delivered the following opening statement at a hearing on how the Working Families Tax Cuts delivered for Americans featuring workers and parents who benefited from GOP tax relief.
As prepared for delivery.
“I first want to thank our witnesses for taking the time out of their busy schedules, traveling here, and testifying on behalf of the everyday Americans who benefited from the historic tax relief Republicans delivered through the Working Families Tax Cuts.
“We look forward to your testimony.
“On July 4, 2025, President Trump, Congress, and Republican Members of the Ways and Means Committee not only prevented a massive tax increase but delivered additional tax relief targeted directly to the hardworking Americans who keep this country running.
“Families across the country are seeing the Working Families Tax Cuts where it matters most—in their paychecks and refunds.
“The latest filing season data proves these policies are reaching tens of millions of families and workers as intended.
“This tax season, more than 60 million Americans—42 percent of all filers—claimed at least one of the new working-family tax relief provisions.
“More than 7 million Americans claimed No Tax on Tips, with an average deduction exceeding $7,000.
“Nearly 28 million Americans claimed No Tax on Overtime, with an average deduction of roughly $3,100.
“More than 34 million seniors claimed the enhanced deduction tied to Social Security income, averaging approximately $7,500.
“More than 1 million Americans claimed the deduction for auto-loan interest, averaging over $1,800.
“That is real tax relief tied directly to how Americans earn a living.
“It means workers keep more of the tips they earn.
“It means employees keep more of their overtime pay.
“It means seniors get tax relief after spending decades paying into the system.
“It means helping families manage the cost of purchasing an American vehicle.
“And those benefits translate into real savings.
“No Tax on Tips delivers an average tax cut of roughly $1,300.
“No Tax on Overtime delivers an average tax cut of approximately $1,400.
“Married seniors can now receive a $12,000 deduction related to their Social Security benefits.
“The Working Families Tax Cuts also strengthened support for parents and children.
“More than 34 million families have claimed the enhanced and permanent Child Tax Credit.
“The credit was permanently expanded to $2,200 and indexed for inflation, ensuring it never loses value over time.
“The law also permanently doubled the standard deduction, permanently increasing it to $31,500 for a married household.
“That means 90 percent of tax filers benefited from a simpler filing process.
“The Working Families Tax Cuts reduced tax liability across every income quintile.
“In fact, a family of four with two children earning $73,000 annually now has zero federal income tax liability.
“At the same time, the top 1 percent now pays nearly 40 percent of all federal income taxes.
“A typical family with two children is expected to see approximately $10,900 more in annual take-home pay.
“Annual real wages are projected to rise by roughly $7,200 per worker.
“From tipped workers and overtime earners to parents, retirees, and young families just getting started, this law is reaching Americans across every stage of life.
“These are people who are not asking for special treatment.
“They are asking to keep more of what they earn.
“The Working Families Tax Cuts reflects that expectation.
“It aligned the tax code with how Americans actually work and earn a living.
“It prevented a tax increase.
“It delivered additional relief.
“And it gave American families the opportunity to keep more of their own money.”