Working Families Tax Cuts Act Benefits for Americans

Since his second tenure as the President, Trump has been scrupulously slashing taxes to help Americans live a peaceful life, without worrying about financial burdens. With his ‘One Big Beautiful Bill (OBBBA),’ he ensured a 2026 tax refund increase and a reduction in taxes.  Big Beautiful Bill, also known as the Working Families Tax Cuts Act (WFTCA), was signed to make several tax law changes to the 2017 Tax Cut and Jobs Act (TCJA), permanent. On July 4, 2025, this bill was signed into law, making many of the temporary tax law changes permanent that were first introduced as part of the Tax Cut and Jobs Act. 

The One Big Beautiful Bill includes permanently expanding tax cuts from TCJA, including the cap on the amount of state and local taxes, or the Sales Tax and Property Tax (SALT) that Americans can deduct. It also makes cuts to energy credits that were passed under the Inflation Reduction Act, changes to taxes on tips and overtime for certain workers. This new legislation also reforms Medicaid, Pell Grants, and student loans, and increases the Debt ceiling. 

This article from The Silicon Journal discusses the benefits that the Working Families Tax Cuts Act provides for Americans to improve their living standards. The Silicon Journal  is an emerging U.S.-based business magazine that bridges the gap between business knowledge and management. Our articles and blogs put forth the latest information on various industries, internal and external factors influencing businesses and people, trends, technologies, and innovations.

With a brief insight into what changes OBBBA brings for taxpayers, we will delve deep into the benefits it aims to offer Americans in 2026.

An Introduction to the Working Families Tax Cuts Act

The United States ushered in a new golden age of taxation with the Working Families Tax Cuts Act on July 4, 2025. As boasted by the U.S. Department of the Treasury, the WFTCA is “a historic tax relief signed into law on July 4th, delivering bigger paychecks and bigger tax refunds in 2026.” Secretary of the U.S. Department of the Treasury, Scott Bessent, has explained the new legislation by saying, “The Working Families Tax Cuts are about opening the books for the American people. We want Americans to see exactly how President Trump's policies will strengthen small businesses, allow workers to keep more of their hard-earned money, and spur economic growth.”

The key policies of this Act include:

• Permanent Tax Cuts for Workers and Families: By expanding pocketbooks with permanent tax relief, WFTCA will put more money back in American hands.

• Main Street Revival: It will foster growth for small businesses throughout American communities.

• Trump Accounts: The legislation will also promote economic security through new savings drivers for American families.

• Made in America: Facilitating domestic manufacturing has always been a priority for Trump. Through this Act, he will revive domestic manufacturing with a growth in research and development. Capital investment will also be facilitated.

• School Choice: WFTCA will also ensure funding for educational freedom and parental rights in education.

• Border Security: Prioritizing America’s borders and national sovereignty is one of the best policies of this legislation.

• American Farmers and Ranchers: With WFTCA, the Trump government will deliver support for the backbone of America’s agricultural economy. 

• Rewarding Hard Work: The Act will ensure that the honest and hard-working Americans keep more money in their hands than they earn.  

• Energy Dominance: WFTCA will ensure American energy independence and global leadership.

• Commitment to Families: It will aim to deliver unwavering support for American families and ensure the sanctity of life.  

• Protecting Taxpayer Dollars: By focusing on eliminating fraud and abuse, this Act ensures responsible use of public funds.

According to this new legislative measure, the Average tax cut will be $3,750 per filer, total tax refunds in 2026 will be $100 billion for American families, $7,200 higher wages per American worker, and 7.2 million jobs will be created and protected for Americans.

The Key wins of the Working Families Tax Cuts Act

As advanced by U.S. Senate Finance Committee Chairman Mike Crapo, this year Americans are hoping for notable refunds due to the Working Families Tax Cuts Act. Below are the key benefits that this Act ensures-

1. Permanent increased standard deduction

2. Permanent lower tax rates

3. No tax on overtime for millions of hourly employees

4. No tax on tips for millions of tipped workers

5. Enhanced child care tax credit

6. New $6,000 bonus tax deduction for seniors

7. New school choice tax credit

8. Extended paid family and medical leave credit

While evaluating the Working Families Tax Cuts Act benefits, we can see how this aims to improve the lives of Americans from all economic backgrounds. The new law is founded on the success of the Tax Cut and Jobs Act by extending support for working families, unlocking jobs and economic opportunities, and enhancing take-home pay for people nationwide.