The Center for a Free Economy has been highlighting how the Working Families Tax Cuts are delivering broad relief for workers, families, seniors, small businesses, and family-owned farms. Through a growing series of short videos tied to CFE blog posts, CFE has explained how the law lowers taxes on tips and overtime, strengthens the Child Tax Credit and standard deduction, expands education choice, improves Health Savings Accounts, provides auto loan relief for American-built

The first filing season under the Working Families Tax Cuts is already showing what certainty and tax relief look like in practice. Families and businesses no longer have to guess whether key parts of the tax code will vanish after one more election cycle. The law made major tax relief permanent, and now millions of Americans are seeing the results in their returns, refunds, deductions, and long-term planning. According to new Treasury Department data, the first tax season un

Democrats still talk as if tax relief for working families mainly helps the rich. The facts point in the other direction. Data from the U.S. House Ways and Means Committee and the latest IRS data summarized by Tax Foundation show that lower-income Americans receive larger percentage tax relief, while higher earners continue to pay the highest tax rates and the largest share of federal income taxes. That matters because the fairness debate around tax policy is often driven mor

The Working Families Tax Cuts made a major pro-growth fix to the tax code by making it easier for businesses to deduct the cost of investment up front instead of dragging those deductions out over years. That matters most for small and family-owned businesses that need cash flow, certainty, and a tax code that rewards expansion instead of penalizing it. The law permanently restored full business expensing for investments purchased in 2025 and onward. It made small business ex

The 2017 Tax Cuts and Jobs Act fixed a major problem in the U.S. tax code. For years, America’s high corporate tax rate and flawed international rules pushed companies to move overseas on paper, taking profits, headquarters, and long-term investment with them. A new push to raise the corporate rate would risk reopening that wound. Stephen Moore and Committee to Unleash Prosperity recently highlighted what happened after tax reform. As Moore notes, corporate inversions effecti

The Working Families Tax Cuts include one of the clearest pro-worker reforms in the law: no tax on tips. Eligible workers can deduct up to $25,000 in qualified tips earned starting in 2025, whether they take the standard deduction or itemize. For millions of Americans in restaurants, hospitality, transportation, and personal service jobs, that means more of their earnings stay in their own pockets. Federal estimates say about 6 million workers report tipped wages, and the ave

The Working Families Tax Cuts, enacted through H.R. 1, expanded education choice in the tax code by creating a new federal scholarship tax credit and broadening how families can use 529 savings. That is a meaningful shift in the right direction. Families need more than one path. Parents should be able to choose the school, tutoring, or support that fits their child instead of being boxed into a one-size-fits-all system. A New Federal Tax Credit for Education Freedom One of th

The death tax remains one of the most destructive taxes in the federal code. It punishes families at the moment of loss and threatens the survival of family farms and small businesses that took decades to build. The “Working Families Tax Cuts” law delivers important relief by making the death tax exemption permanent and protecting families from a massive tax hike that would have taken effect if Congress had failed to act. Permanent Protection From the Death Tax Under the “Wor

Raising children has never been cheap. From childcare to adoption to paid leave, many families face significant costs during life’s most important moments. The “Working Families Tax Cuts” respond directly to these challenges by lowering the cost of child and dependent care and providing meaningful tax relief to parents. At the center of these reforms are two major improvements that strengthen financial support for families: a permanent expansion of the Child Tax Credit and ne

Early IRS data show the typical tax refund this year is running roughly 10 to 15 percent higher than at the same point last year. That increase is not random. It reflects pro-worker tax policy that is putting real money back into household budgets. A recent report from CBS News highlights how Americans plan to use their refunds. Many are paying down debt, building emergency savings, or covering essential expenses. The reason refunds are larger is straightforward. The “Working

More than 4.8 million veterans work in overtime-eligible jobs. About 1.4 million of them regularly put in overtime hours. When those men and women stay late, take extra shifts, or work weekends, they should keep more of what they earn. The “Working Families Tax Cuts” make that possible. This reform ensures that veterans who go the extra mile on the job are not punished by higher federal taxes on their overtime pay. After serving their country, they deserve a tax code that res

The “Working Families Tax Cuts” deliver real relief to the Americans who work the longest hours and carry the heaviest load. At the center of that relief is the “no tax on overtime” tax cut. Under this policy, overtime workers can exclude up to $12,500 per year in overtime pay from their taxable income, or up to $25,000 per year for married couples. That means the extra hours worked on nights and weekends are no longer fully subject to federal income tax. Work is rewarded. Ef

The One Big Beautiful Budget Act moves federal policy back toward growth, work, and fiscal discipline. Anchored by the Working Families Tax Cuts, the law improves incentives across the economy while pairing tax relief with meaningful spending restraint. According to the Congressional Budget Office’s latest outlook, the economy strengthens in the near term as a result of the reconciliation law. After payrolls grew by an average of just 70,000 jobs per month in 2025, CBO projec

More than 40 million Americans have a Health Savings Account, yet most treat it like a checking account instead of what it truly is: one of the most powerful tax-advantaged savings tools in the tax code. When a medical bill arrives, many families simply swipe the HSA debit card and move on. The balance often sits in cash, earning little or nothing. That approach feels practical, but it sacrifices the most valuable feature of an HSA, which is long-term, tax-free growth. There

Washington’s spending binge drove up interest rates and made big purchases more expensive for working families. Even as inflation begins to cool, the cost of financing a car remains higher than it should be. The “Working Families Tax Cuts” respond with targeted relief. One key provision allows up to a $10,000 tax deduction for auto loan interest on vehicles assembled in the United States, even if you've already taken the standard deduction. This is practical tax relief aimed

Washington’s recent surge in prices driven by Bidenflation hit seniors especially hard. Many retirees live on fixed incomes, and a growing number of older Americans continue working part time just to keep up. The "Working Families Tax Cuts" responds to that reality by delivering targeted tax relief for seniors who were squeezed by higher costs. A key provision is a new senior deduction that reduces federal income taxes on Social Security benefits for most seniors and allows l

House Republicans are showing what tax reform looks like when it is built around working families and a simpler tax code. The Working Families Tax Cuts of 2025, enacted as part of the “One Big Beautiful Bill Act,” are intended to streamline filing, lower taxes, and deliver meaningful relief to households across the country. For 91 percent of taxpayers, the policy centers on a simpler filing structure. The expanded standard deduction means families pay no federal income tax on