The Treasury Department released a new analysis that found the majority of filers who claimed the new tax breaks enacted by Republicans last year earn less than $100,000.
Republicans passed a massive tax cut bill last summer as part of the One Big Beautiful Bill Act. Most of the legislation preserved and made permanent expiring tax provisions, but it also included several tax cuts that President Donald Trump campaigned on, such as tax breaks for tips, overtime income, Social Security, and auto loans.
Recommended Stories
BESSENT CLARIFIES THREAT AGAINST BILL PULTE: HE SAID HE WAS GOING TO ‘KICK HIS A**’
As the administration has worked to gin up support for the cuts, Republicans have taken to referring to the bill as the “working families tax cuts.” The Treasury analysis focused on how most of the new provisions were claimed by those earning less than $100,000 and $200,000.
“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,” said Treasury Secretary Scott Bessent.
For instance, no taxes on tips was a major campaign tax proposal.
The Treasury said that over 7.5 million filers have claimed the no-taxes-on-tips benefit, with 9 in 10 filers earning under $100,000 and 99% of them earning under $200,000 annually.
Some 29 million filers claimed the no-taxes-on-overtime deduction, according to the analysis. Three-fourths of those earned under $100,000, and 96% earned under $200,000, the Treasury said.
Additionally, 35 million seniors claimed the enhanced deduction for seniors over the age of 65, a provision meant to fulfill Trump’s campaign promise to end taxes on Social Security benefits. Of those, 68% earned under $100,000, and 94% earned under $200,000.
“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,” Bessent said.
It is worth noting that many of the new tax provisions were designed to largely benefit lower- and middle-income taxpayers. They phase out based on income.
BESSENT CONFRONTS RON WYDEN AT HEARING WITH ACCUSATIONS HIS SON MET WITH JEFFREY EPSTEIN
The Treasury analysis also said that 97% of filers received a tax cut because of the legislation. That is in part because most would have seen tax hikes if the Tax Cuts and Jobs Act reductions were allowed to expire.
