Donald Trump Signs Working Families Tax Cuts Legislation

President Donald Trump signed the Working Families Tax Cuts legislation, also known as the One Big Beautiful Bill Act. The law makes the 2017 Tax Cuts and Jobs Act permanent and establishes new deductions for overtime earnings, tip income, auto loan interest, and seniors. Additionally, the bill raised the state and local tax deduction limit from $10,000 to $40,000 for 2025.

Treasury Secretary Scott Bessent reported that more than 64 million tax returns utilized at least one of the new signature cuts. White House spokesman Kush Desai described the provisions as a historic achievement for the American people. Internal Revenue Service data indicated that the average individual tax refund for the 2026 filing season increased 11.5% to $3,276 as of May 8.

Policy experts from the Tax Foundation and Urban-Brookings Tax Policy Center observed that benefits varied by household. They noted that the increased state and local tax deduction primarily aided upper-middle to upper-income earners, while the lowest earners may not have benefited if they owed no taxes.