Rep. Mike Kelly statement on President Trump's State of the Union Address

WASHINGTON, D.C. -- Today, U.S. Rep. Mike Kelly (R-PA), Chairman of the Ways & Means Subcommittee on Tax, released this statement following President Donald Trump's State of the Union Address Tuesday night.

"In just his first year back in the White House, President Trump and his America First agenda have restored American greatness both at home and abroad. I was honored to work with the President to craft common sense, pro-growth tax policy in the Working Families Tax Cuts, which are now delivering historic returns for hardworking Pennsylvania families," said Rep. Kelly. "America is stronger, more prosperous, and more respected around the world than it was just one year ago. As we look forward to our Nation's 250th anniversary, I look forward to working with President Trump to address the critical issues facing the American people."

BACKGROUND

In President Trump's first year, Rep. Kelly has worked alongside the President and his administration on major pieces of legislation and issues impacting Pennsylvanians:

• July 2025-- Rep. Kelly votes for the Working Families Tax Cuts, also known as the "One Big Beautiful Bill." The law includes Kelly's legislation that made permanent and expanded Opportunity Zones legislation to improve communities and neighborhoods; and, his legislation to allow taxpayers to deduct their auto loan interest.
• February 2026-- Rep. Kelly joins President Trump at the White House to tout clean American coal and Pennsylvania energy production. Pennsylvania is the third-largest coal producing state in the country.
• November 2025 -- The Trump administration announced a deal to lower the cost of popular GLP-1 weight loss drugs, Wegovy and Zepbound. The announcement builds upon Kelly's legislation, the Treat and Reduce Obesity Act, bipartisan legislation to combat the obesity crisis in the United States by providing Medicare coverage of GLP-1s.
• May 2025 -- Rep. Kelly welcomes U.S. Secretary of Housing & Urban Development Scott Turner to Erie to tour the city's Opportunity Zones and other housing initiatives.
• December 2025-- Joined President Trump to announce executive actions to roll back costly and unlawful Biden-era CAFE Standards.
• March 2025 -- Rep. Kelly and Speaker Johnson led Members of Congress to welcome President Trump and Irish leaders to Capitol Hill for the annual St. Patrick's Day luncheon.

Fast Facts: Working Families Tax Cuts

• Largest Tax Refund Filing Season Ever: Thanks to the Working Families Tax Cuts, taxpayers could get an average of $1,000 MORE in their tax refund this tax filing season. Refunds could total almost $4,000 per person on average, putting more money back in the pockets of working families. Average refund amounts are up 14% so far this tax filing season.
• No Federal Tax Liability for Working Families: A family of four with two children earning up to $73,000 could have no federal tax liability because of the bigger standard deduction and bigger Child Tax Credit
• No Tax on Tips: Waitresses, barbers, bellhops, and other tipped professions could see their taxes cut $1,300.
• No Tax on Overtime: Welders, linemen, factory workers, and over workers earning overtime could see their taxes cut $1,400.
• No Tax on Social Security: 88% of seniors receiving Social Security benefits will pay no tax on their benefits under the WFTC.
  $6,000 deduction for seniors 65+/$12,000 for married couple
• Trump Accounts: Each newborn baby will receive $1,000 in an investment account to support that child's future.
• Bigger Child Tax Credit: Credit increased to $2,200 per child and indexed to inflation so the credit never loses value.
• Bigger Standard Deduction: Boosted to $31,500 for a married family, making tax filing simpler for the 91% of taxpayers who use this deduction.
• Childcare Relief Lowers Costs: More access to the Adoption Tax Credit, Paid Leave Tax Credit, Child/Dependent Care Credit, and Employer-Provided Childcare Credit help lower the cost of parents taking care of their families.
• Small Businesses: Permanency of the 20 percent small business deduction allows 30 million small businesses to make payroll, hire new employees, and expand their business.
  20 percent small business deduction will create an estimated 1 million new small business jobs each year over the next 10 years and 2 million each following year.
• Tax Relief for Rural America:2 million family farms will benefit from an increased Death Tax exemption.
• Manufacturing Boom in America: President Trump's 100% expensing for new factories, in addition with permanence of other pro-growth tax policy, will fuel a manufacturing boom.
  Over 1 million manufacturing jobs are estimated to be protected or created thanks to the Working Families Tax Cuts.