Crapo Statement at Budget Hearing with Treasury Secretary Bessent

Crapo Statement at Budget Hearing with Treasury Secretary Bessent

Washington, D.C.-U.S. Senate Finance Committee Chairman Mike Crapo (R-Idaho) delivered the following remarks at a hearing on the President's Fiscal Year 2027 U.S. Department of the Treasury budget.

As prepared for delivery:

"Thank you, Secretary Bessent, for appearing before the Committee today to discuss the President's Fiscal Year 2027 Budget for the Treasury Department and the Administration's broader economic agenda.

"A central part of that economic agenda is driven by the landmark bill enacted by Republicans last year.

"The Working Families Tax Cuts not only provided historic tax relief for working-class Americans but also made permanent critical pro-growth tax policies that are already increasing domestic investment and boosting economic growth.

"The magnitude of this success to date was made possible by the work of Treasury and the IRS in publishing immediate guidance on the new and restored tax policies in the lead-up to the 2026 filing season.

"I appreciate all the hard work from Treasury and IRS employees to release that initial guidance as quickly as they did.

"Doing so provided rules of the road for the tens of millions of people claiming at least one of Republicans' signature new tax cuts, from no tax on tips and overtime, to increased tax relief for seniors.

"Contrary to the Democrat narrative that the law only benefits the wealthy, these policies were claimed by over 60 million working-class Americans-nearly half of all filers.

"At the end of the tax filing season, over 7.5 million workers claimed the tips deduction, more than 29 million workers benefitted from no tax on overtime, and more than 35 million seniors' tax burdens were reduced, with an average additional deduction of over $7,500.

"Additionally, over 5.5 million children have already been signed up for Trump Accounts, in large part due to Treasury's work to implement and promote the program.

"These savings accounts offer an important opportunity for young Idahoans and children across the country to begin building financial security.

"Hardworking Americans kept more of their money this tax filing season and millions of people got more money back compared to previous years.

"Over $320 billion was refunded to taxpayers, an 18 percent increase from last filing season-I note that again, an 18 percent increase from the last filing season-with an average refund of nearly $3,300-more than an 11 percent increase.

"And even the average refund amount does not tell the whole story; many working-class Americans who owed money when filing in prior years instead received a refund this year because of the Working Families Tax Cuts.

"Treasury's initial guidance has also helped the business provisions of the Working Families Tax Cuts, like full expensing for equipment and factories, to drive domestic investment, higher productivity and higher wages for American workers.

"Nearly 26 million small businesses now have increased confidence thanks to a permanent, pro-growth 20 percent tax deduction.

"Estimates find that permanence will create 1.2 million jobs annually and boost small-business GDP by $750 billion over the next decade.

"The permanent restoration of full expensing for U.S. research and development will support domestic innovation and growth by large and small businesses alike.

"To maximize that growth, taxpayers need additional clarity from Treasury and the IRS so that they can plan and invest with certainty. Issuing final guidance for these tax provisions will provide that certainty and further encourage domestic investment.

"Implementing the new provisions from the Working Families Tax Cuts was no small task, but the 2026 tax filing season proceeded smoothly for tens of millions of Americans.

"I look forward to hearing from you about plans for a successful filing season next year as more work is done to implement the law and technological investments are made to modernize the IRS.

"Regarding IRS modernization, Ranking Member Wyden and I released the Taxpayer Assistance and Service Act earlier this year.

"This bipartisan bill, with more than 60 provisions and supported across the tax community, is focused on modernizing the IRS, improving the taxpayer experience and strengthening taxpayer rights.

"Many Finance Committee member priorities are included in the bill, along with a series of long-requested provisions from tax practitioners as well as the National Taxpayer Advocate.

"I look forward to advancing this legislation in the very near future and welcome any comments from you on the bill.

"Beyond tax administration, I am hopeful for similar support as we move forward on other priorities with a bipartisan foundation in this Committee, such as establishing clear and durable tax rules for digital assets.

"Mr. Secretary, we are very glad to have you with us today and look forward to your remarks."