Big, Beautiful Success Story: New Analysis Confirms Working Families Tax Cuts Are Delivering for Americans Earning Less than $100,000

WASHINGTON, D.C. - House Ways and Means Committee Chairman Jason Smith (MO-08) today highlighted a new Department of the Treasury analysis confirming that Republicans' Working Families Tax Cuts are delivering as promised by putting more money in the pockets of working Americans earning less than $100,000.

The analysis shows that the overwhelming majority of Americans benefiting from Republicans' signature tax relief provisions - such as No Tax on Tips, No Tax on Overtime, No Tax on Social Security, and No Tax on Auto Loan Interest - earn less than $100,000 annually. The findings directly disprove Democrats' claims that these tax cuts would primarily benefit billionaires rather than working families.

"Republicans kept our promise to provide tax relief for working families, tipped workers, seniors, and job creators. Democrats not only created a cost-of-living crisis through their reckless $10 trillion spending spree under President Biden, but they also gave tax breaks to the wealthy and well-connected. Every Democrat voted against providing targeted relief for working-class Americans earning less than $100,000 and voted against policies that encourage investment and job creation here at home," said Ways and Means Committee Chairman Jason Smith (MO-08). "Data from the recent tax filing season continues to prove that the Americans benefiting most from these tax cuts are workers, families, and seniors earning less than $100,000 a year. Whether it's a waitress keeping more of her tips, a factory worker keeping more of his overtime pay, a senior on a fixed income, or a family purchasing an American-made vehicle, Republicans are delivering real relief where it's needed the most."

By the Numbers: Working Families Tax Cuts Deliver for Americans Earning Less Than $100,000

• Nearly 70 percent of Americans who received a tax cut earned less than $100,000, while 96 percent of Americans who received a tax cut earned less than $200,000.
• Over 7.5 million Americans claimed No Tax on Tips, with an average deduction of over $7,000.
  • 90 percent of Americans who claimed No Tax on Tips earned less than $100,000 while 99 percent earned less than $200,000.
• Over 29 million Americans claimed No Tax on Overtime, with an average deduction of over $7,500.
  • 75 percent of Americans who claimed No Tax on Overtime earned less than $100,000 while 96 percent earned less than $200,000.
• Over 35 million American seniors claimed the Social Security deduction, with an average deduction of over $7,500.
  • 68 percent of Americans who claimed the Social Security deduction earned less than $100,000 while 94 percent had income under $200,000.
• Over 1.4 million Americans claimed No Tax on Auto Loan Interest on their new American vehicles, with an average deduction of over $1,800.
  • 62 percent of Americans who claimed No Tax on Auto Loan Interest earned less than $100,000 while 98 percent earned under $200,000.
• Over 5.5 million Trump Accounts have been opened, 1.4 million of which are eligible for the $1,000 pilot program contribution.
  • 86 percent of all Trump Accounts opened are linked to families earning less than $200,000.
• Nearly 40 million families claimed the enhanced Child Tax Credit, which was expanded to $2,200 and permanently indexed for inflation under the Working Families Tax Cuts.
  • 65 percent of families claiming the credit earned under $100,000, while 89 percent earned under $200,000.
• Over 127 million Americans (90 percent of all tax filers) have claimed the doubled standard deduction.

READ: Five Key Moments: Working Americans Share The Personal Benefits of the Working Families Tax Cuts

READ: Big, Beautiful Success Story: Missouri Small Business Owner Expands, Creates New Jobs Thanks to Working Families Tax Cuts