Harshbarger Statement on New Working Families Tax Cuts Treasury Analysis

Washington, D.C. - Ahead of the one-year anniversary of President Trump signing Republicans' signature legislation-the Working Families Tax Cuts -into law, Congresswoman Diana Harshbarger (R-TN) today applauded a new analysis from the U.S. Department of the Treasury confirming the legislation delivered historic tax relief to millions of low- and middle-income Americans this past tax filing season.

"Democrats spent months claiming the Working Families Tax Cuts were a giveaway to the wealthy, but the data just proved them wrong," said Congresswoman Diana Harshbarger. "Not a single Democrat voted for this law. If they had gotten their way, the waitress in Kingsport, the factory worker in Bristol, and the retiree in Greeneville would all be staring down the largest tax hike in American history right now. Instead, they're keeping more of their hard-earned money in their pockets, and the results speak for themselves. That's the difference between the Republicans' pro-growth agenda and the Democrats' radical tax-and-spend agenda. I am proud to have delivered for East Tennesseans alongside President Trump and my House Republican colleagues."

"American families and workers overwhelmingly benefitted from the Working Families Tax Cuts, receiving the largest share of the historic tax relief delivered this past filing season. This analysis confirms President Trump's tax policies deliver substantial tax cuts to hardworking Americans and provide greater relief and financial certainty to low- and middle- income households," said Secretary of the Treasury Scott Bessent . "Under President Trump, our federal tax code and system reflect the American people's mandate to reject policies that punish success with tax hikes and embrace those that restore fairness, reward work, respect hard-earned paychecks, and reignite the American Dream."

BACKGROUND:

According to a Treasury Department analysis of the most recent tax filing season, American families and workers claimed $82 billion in individual tax relief under the Working Families Tax Cuts through the April filing deadline. Without the legislation, filers would have faced a $5 trillion tax hike upon expiration of the 2017 Tax Cuts and Jobs Act . Instead, 97% of filers received a tax cut, with 96% of those earning under $200,000 and nearly 70% earning less than $100,000.

Key provisions and their impact include:

• No Tax on Tips: More than 7.5 million filers claimed the deduction, with an average deduction exceeding $7,000. 90% of claimants earned under $100,000.
• No Tax on Overtime: More than 29 million filers claimed the deduction, with an average deduction exceeding $3,100. 75% of claimants earned under $100,000.
• Enhanced Senior Deduction: More than 35 million seniors claimed the deduction, with an average deduction exceeding $7,500. Nearly 70% of claimants earned under $100,000.
• Enhanced Child Tax Credit: Nearly 40 million families claimed the permanently doubled credit, with 65% earning under $100,000.
• Doubled Standard Deduction: More than 127 million filers-90% of all tax filers-claimed the permanently doubled standard deduction.
• Trump Accounts: More than 5.5 million Trump Accounts have been opened, with 86% linked to families earning under $200,000.
• No Tax on Car Loan Interest: More than 1.4 million filers claimed the deduction on new American vehicles, with an average deduction exceeding $1,800.

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