Newsletter—Working Family Tax Cuts: Delivering Relief for Families, Seniors, and Small Businesses

House Republicans and President Trump kept our promise to deliver the most pro-worker, pro-family tax reform in history. The Working Family Tax Cuts (OBBB) put hardworking Americans first with real relief for families, small businesses, and seniors.

Bigger Paychecks for American Workers

• Historic Tax Relief for Families: Permanent lower tax rates so Americans can keep more of their hard-earned money, including an average tax cut of 15% for Americans earning $15,000-$80,000 per year.
• Higher Wages: The Working Family Tax Cuts are projected to increase take home pay in Pennsylvania by up to $12,500 per family.
• No Tax on Overtime: More than 80 million hourly workers will no longer pay taxes on their overtime earnings-an average boost of $1,400 a year.
• No Tax on Tips: Four million tipped workers will keep more of what they earn, with up to $25,000 in tips per year completely tax-free.
• Social Security Tax Relief: Nearly 9 in 10 seniors-88%-will no longer pay federal taxes on their Social Security benefits, the largest senior tax cut in American history.
• Enhanced Child Tax Credit: Raises the credit from $2,000 to $2,500 per child, fully refundable, providing relief to over 40 million families.
• Standard Deduction Boost: Preserves and increases the standard deduction by up to $1,500 for working families-$31,500 for joint filers and $15,750 for single filers-benefiting 91% of taxpayers.

Every single Democrat voted against the Working Family Tax Cuts-voting to raise taxes by $4 trillion and opposing each of these provisions that deliver relief to hardworking families.

Strengthening Small Businesses

The bill locks in the largest middle-class and small business tax cuts ever passed, providing stability for job creators and ensuring they can grow, hire, and invest. For small businesses-which make up 99.6% of Pennsylvania employers-it makes permanent immediate R&D expensing, 100% bonus depreciation, and the 20% small business deduction, protecting more than 960,000 job creators across the Commonwealth.

Protecting Medicaid & Cutting Waste

For too long, Medicaid has been plagued by fraud and mismanagement. This law restores accountability by requiring eligibility checks, removing non-citizens from the rolls, and establishing commonsense community engagement standards such as work, training, or volunteering. These reforms save nearly $1 trillion and ensure Medicaid resources go to low-income pregnant women, children, seniors, and people with disabilities who need them most.

Historic Investment in Rural Hospitals

The Rural Health Transformation Program provides a $50 billion investment over five years to protect access to care in rural America. This once-in-a-generation investment will help rural hospitals across the commonwealth modernize, improve services, and ensure long-term sustainability-so families in small towns can get the care they deserve.

No Tax on Tips: Delivering Fairness for Working Families

President Trump and House Republicans delivered on our promise to eliminate tax on tips through the Working Family Tax Cuts. This is a real win for working families. By ending the tax on tips, we're letting hardworking Americans keep more of what they earn-and strengthening local economies in the process.

This week, the White House released a full list of occupations eligible for no tax on tips. That list can be found below:

Beverage & Food Service: Bartenders; Wait Staff; Food Servers, Non-restaurant; Dining Room and Cafeteria Attendants and Bartender Helpers; Chefs and Cooks; Food Preparation Workers; Fast Food and Counter Workers; Dishwashers; Host Staff (Restaurant, Lounge, and Coffee Shop); Bakers.

Entertainment & Events: Gambling Dealers; Gambling Change Persons and Booth Cashiers; Gambling Cage Workers; Gambling and Sports Book Writers and Runners; Musicians and Singers; Disc Jockeys (except radio); Entertainers & Performers; Digital Content Creators; Ushers, Lobby Attendants, and Ticket Takers; Locker Room, Coatroom and Dressing Room Attendants.

Hospitality & Guest Services: Baggage Porters and Bellhops; Concierges; Hotel, Motel and Resort Desk Clerks; Maids and Housekeeping Cleaners.

Home Services: Home Maintenance and Repair Workers; Home Landscaping and Groundskeeping Workers; Home Electricians; Home Plumbers; Home Heating/Air Conditioning Mechanics and Installers; Home Appliance Installers and Repairers; Home Cleaning Service Workers; Locksmiths; Roadside Assistance Workers.

Personal Services: Personal Care and Service Workers; Private Event Planners; Private Event and Portrait Photographers; Private Event Videographers; Event Officiants; Pet Caretakers; Tutors; Nannies and Babysitters.

Personal Appearance & Wellness: Skincare Specialists; Massage Therapists; Barbers, Hairdressers, Hairstylists, and Cosmetologists; Shampooers; Manicurists and Pedicurists; Eyebrow Threading and Waxing Technicians; Makeup Artists; Exercise Trainers and Group Fitness Instructors; Tattoo Artists and Piercers; Tailors; Shoe and Leather Workers and Repairers.

Recreation & Instruction: Golf Caddies; Self-Enrichment Teachers; Recreational and Tour Pilots; Tour Guides and Escorts; Travel Guides; Sports and Recreation Instructors.

Transportation & Delivery: Parking and Valet Attendants; Taxi and Rideshare Drivers and Chauffeurs; Shuttle Drivers; Goods Delivery People; Personal Vehicle and Equipment Cleaners; Private and Charter Bus Drivers; Water Taxi Operators and Charter Boat Workers; Rickshaw, Pedicab, and Carriage Drivers; Home Movers.

Bottom Line

The Working Family Tax Cuts deliver relief where it matters most-helping families afford everyday life, strengthening small businesses, protecting seniors, rooting out fraud, and making a historic investment in rural hospitals.