Americans Are Seeing Historic Tax Cuts Thanks To President Trump And Republicans

AMERICANS ARE KEEPING MORE MONEY IN THEIR WALLET

• On July 4, 2025, President Trump signed the Working Families Tax Cuts, the largest tax cut in U.S. history.
• The bill extended the Tax Cuts and Jobs ACT of 2017 (TCJA) tax cuts, which prevented a more-than $4 trillion tax hike on American families and businesses.
• Every single Democrat voted against this historic bill.
• The law eliminated taxes on tips, overtime, and Social Security, allowing Americans to keep more of their hard-earned money.
• Over 53 million taxpayers have benefited from at least one of the new provisions.
• Americans earning $15,000-$80,000 per year are receiving an average tax cut of 15%.
• More than five million children have already been signed up for Trump Accounts, with over one million families claiming the $1,000 starter investment.
• The average tax refund is nearly 11% higher than it was last year.
• Average refunds are over $3,400.
• Average tax refunds are up 24% compared to the four-year average of refunds under Joe Biden.
• The Working Families Tax Cuts made the doubled standard deduction permanent, allowing Americans to continue shielding a larger portion of their income from taxes.
• Thanks to the Working Families Tax Cuts, qualifying individuals can now deduct up to $10,000 per year in interest paid on certain car loans.
• Over one million filers have benefited from this provision with an average deduction of over $1,800.
• The Working Families Tax Cuts created a new $6,000 tax deduction for seniors.
• Filers can see how their state benefited from the bill here.

AMERICAN WORKERS ARE BENEFITING FROM LOWER TAXES

• Thanks to President Trump, Americans no longer have to pay taxes on tips or overtime.
• 25 million Americans have taken advantage of no tax on overtime.
• Over 6 million Americans have taken advantage of no tax on tips.
• The law made opportunity zones permanent, strengthens the program, and unlocks over $100 billion of investment into rural and distressed communities.

SMALL BUSINESSES ARE FEELING THE TAX CUTS

• The TCJA of 2017 created a temporary small business tax deduction (199A) of 20% – the Working Families Tax Cuts made that deduction permanent, allowing small businesses to keep more of their income to invest and grow.
• This will create over one million new small business jobs and generate $750 billion in economic growth.
• So far this law has reduced taxes for about 12 million small business owners by nearly $7,000.
• Farmers are protected from paying more taxes since the law made permanent and doubled the death tax exemption for over two million family-owned farms.
• The Workings Families Tax Cuts doubled the amount small businesses can immediately deduct for equipment and property purchases to $2.5 million, helping them reinvest in their operations, expand, and hire more workers.
• The law eliminated the burdensome Biden-era requirement for gig workers to report transactions of $600 or more from Venmo, PayPal, and other services.
• The law also increased the threshold for businesses to report payments, reducing paperwork for small businesses.

THE LAW IS PUTTING FAMILIES FIRST

• The TCJA child tax credits were temporary and set to expire, but the Working Families Tax Cuts made the child tax credit permanent.
• The law also increased the child tax credit to $2,200 from $2,000 for each qualifying child.
• The bill indexed the credit for inflation, so the amount of the child tax credit can rise over time.
• Increasing the child tax credit and making it permanent will allow families to cover costs of raising children, from groceries to childcare.
• The paid family leave tax credit was set to expire but the Working Families Tax Cuts made it permanent.
• This change makes it easier for families to take paid time off without losing their paycheck.
• The law allows more workers to qualify for paid leave, including part-time employees and those newer to the job, expanding support to millions of families.
• The Working Families Tax Cuts increased the employer-provided child care credit which will lower out-of-pocket childcare costs for families.
• The Working Families Tax Cuts strengthened the Child and Dependent Care Tax Credit, helping working parents get more meaningful financial relief to cover the cost of child care.
• The Working Families Tax Cuts increased the amount families can set aside tax-free in Dependent Care Flex Savings Accounts, helping working parents keep more of their income to cover child care costs.
• This increase to $7,500 from $5,000 was the first permanent increase since 1986.
• The adoption credit was made partially refundable, allowing families who choose to adopt to keep more of their money to help cover the cost of bringing a child into their home.

THE WORKING FAMILIES TAX CUTS ARE MAKING IT EASIER TO PAY FOR EDUCATION

• The Working Families Tax Cuts greatly enhanced 529 education savings accounts which allow American families and students to save money on education-related expenses.
• The Working Families Tax Cuts doubled the withdrawal limit for each student per year from $10,000 to $20,000.
• 529 funds can now be used for a broader range of K-12 education expenses such as textbooks, tutoring, and educational therapies.
• The law also expands 529 plans to cover career training programs, including trade schools, apprenticeships, and professional certifications.
• The law created the Education Freedom Tax Credit which allows taxpayers to support student scholarships while receiving a tax credit, helping families access more education options.

TRUMP ACCOUNTS INVEST IN AMERICA’S CHILDREN

• The Working Families Tax Cuts created Trump Accounts which will build wealth for America’s children.
• Every American child with a Social Security number under 18 is eligible, and those born between 2025-2028 will receive a $1,000 seed deposit, completely free.
• Funds will be invested in a diversified portfolio to maximize long-term growth while minimizing risk.
• Investment growth in Trump Accounts is not taxed while it remains in the account, allowing savings to compound faster over time.
• Parents, employers, and others can contribute up to $5,000 per year.
• If contributions are maxed out each year, the account could reach $271,000 by the time the child turns 18 years old.
• Corporations can contribute up to $2,500 to Trump Accounts on behalf of their employees’ children as a tax-deductible, family-focused benefit.
• Family members, employers, and communities can all contribute, making it a shared investment in the next generation.