Millions of Americans Already Have More Money in Their Pockets Thanks to New Trump Tax Cuts

Nearly 45 percent of taxpayers are benefiting from at least one of the No Tax on Tips, Overtime, Social Security, or Auto Loan Interest tax cuts.

WASHINGTON, D.C. - Ways and Means Committee Chairman Jason Smith (MO-08) released the following statement on Treasury Department snapshot data showing how new Republican-enacted tax cuts - specifically President Trump's tax relief priorities - are benefiting taxpayers:

"News that over 27 million Americans have already taken advantage of the significant new tax relief brought about by President Trump and Republicans in Congress is further proof that the Working Families Tax Cuts are delivering for hardworking families," said Ways and Means Committee Chairman Jason Smith (MO-08). "The beneficiaries of these policies are everyday Americans like Patrick Wrona, a server who testified at our hearing in Las Vegas that the amount of money that would be saved from No Tax on Tips and No Tax on Overtime equates to the amount he pays in electric bills for a year. That's life-changing relief. Despite delivering $32 billion in relief for No Tax on Tips, $90 billion in relief for No Tax on Overtime, and $63 billion in tax relief for seniors, every Democrat in Washington voted against all these policies. As the tax filing season continues, millions more Americans are seeing first-hand how Republicans successfully are putting more money in their pocket."

Key Highlights
U.S. Treasury Department data shows the wide adoption of new tax relief, enacted as part of the Working Families Tax Cuts, is helping millions of families.

• Nearly 45 percent of tax returns have claimed at least one of President Trump's new tax cut priorities.
• Over 15.5 million returns have claimed No Tax on Overtime.
• Over 9.2 million returns have claimed No Tax on Social Security.
• Over 3.5 million returns have claimed No Tax on Tips.
• Over 690,000 returns have claimed No Tax on Auto Loan Interest.
• Average tax refund is up over 10 percent, totaling over $3,700.

In a Ways and Means Committee hearing earlier this month, IRS CEO Frank Bisignano testified that taxpayers earning less than $100,000 are experiencing the largest percent increase in refunds and seniors are experiencing the largest dollar increase in their refunds.

How the Working Families Tax Cuts Deliver for Working-Class Americans:

• No tax on tips provides an average $1,300 tax cut.
• No tax on overtime delivers an average $1,400 tax cut.
• The standard deduction is increased by $1,500 per family to $31,500.
• Married seniors will get a $12,000 deduction for their Social Security benefits.
• The Child Tax Credit expands to $2,200 and is permanently indexed for inflation, so the credit never loses value.
• Raises annual real wages by $7,200 per worker.
• Increases annual take-home pay for a typical family with two children by $10,900.
• A family of four with two children earning $73,000 has zero federal income tax liability.