Tax Cuts for Working Americans

MYTH: The One Big Beautiful Bill Act is just a tax break for billionaires.  

FACT: The One Big Beautiful Bill Act (OBBBA) delivers the LARGEST tax cut for middle- and working-class Americans.  

1. Stops a scheduled $1,700 tax increase later this year
2. The average American family of four making less than $100,000 will receive an additional $600 in tax cuts  
3. Working families who make $15,000 - $30,000 will have their taxes cut by 21% - the largest tax break for any income group 

FACT: The OBBBA is the single most impactful piece of legislation supporting families. 

1. Offers additional childcare savings options and gives families more tools and freedom to plan for their futures
2. Eliminates federal taxes on certain car loan interest for working families
3. Allows parents to keep more of their paycheck by making the Child Tax Credit permanent, increasing it to $2,500 per child, and indexing it to inflation
4. Provides greater access to the Adoption Tax Credit and the Child and Dependent Care Tax Credit
5. Expands access to the Flexible Spending Accounts (FSA) and Health Savings Accounts (HSA), which gives families the ability to use their pre-taxed dollars to better manage health care and childcare costs
6. Gives parents the opportunity to take control of their children’s education by creating a federal tax credit for education scholarships
7. Provides Social Security tax relief for senior citizens, allowing retirees to keep more of their earned benefits Streamlines student loan repayment options, making it easier for borrowers to pay off their student debt, while also saving taxpayers billions of dollars through reforms to student aid programs 

FACT: The OBBBA increases take-home pay and raises wages for millions of American workers.   

1. Preserves and expands the standard deduction by up to $1,500 for working families, providing tax relief to 91% of American taxpayers
2. Keeps hard-earned money in the pockets of Americans by subjecting less of their income to federal income taxes  

FACT: Workers across the country will see real wage growth.  

1. Raises real wages for American workers by as much as $7,200, helping families keep more of what they earn
2. Helps grow paychecks faster than inflation, so you can buy more with the same amount of money 

FACT: Tipped workers like waitresses, waiters, barbers, hairstylists, and taxi drivers will see a meaningful income boost.   

1. Cuts taxes on tips
2. Provides up to $1,300 in additional income for the 4 million Americans who rely on tipped wages
3. Allows service workers to keep every dollar they earn from customer gratuities up to $25,000, providing meaningful relief to hard-working Americans.  

FACT: Hourly workers who put in overtime will no longer be taxed on their overtime premium pay.   

1. Exempts overtime premium pay from taxation for hourly workers
2. More than 80 million hourly workers stand to earn up to $1,400 in added income under the bill’s tax relief for overtime earnings
3. Rewards hard work, helps cover rising living costs, and puts more money directly in the pockets of over 80 million hourly workers 

FACT: The bill is expected to protect or create up to 7.2 million jobs, including 1.4 million new manufacturing positions, AND supercharge the U.S. economy by boosting the average annual growth by 1.2% annually. 

1. Creates more opportunity and prosperity for American families and increases job growth thanks to pro-worker tax policies
2. Provides incentives to keep manufacturing and associated jobs here in America
3. Strengthens the U.S. economy by providing stable, well-paying jobs for Americans and reduces reliance on foreign production
4. Enhances national security and supply chain resilience by keeping critical industries and skills within our borders 

MYTH: The OBBBA will gut Medicaid and kick the most vulnerable off vital programs. 

FACT: The bill protects Medicaid solvency and effectiveness, ensuring it remains sustainable and available for those who really need it. 

1. Ensures Medicaid goes to the truly vulnerable — not to able-bodied individuals who choose not to work
2. Includes common sense community engagement requirements for able-bodied adults aged 19–64, which can be waived by states on a case-by-case basis for temporary hardships like hospitalizations or disasters
3. Protects the most vulnerable, including children, seniors, those with serious mental or physical disabilities, pregnant women, caregivers, and those already complying with Supplemental Nutrition Assistance Program (SNAP) or Temporary Assistance for Needy Families (TANF) work rules
4. Gives states control over work and community engagement requirements, providing $200 million to help implement the new requirements
5. Roots out waste, fraud, and abuse by removing the deceased from enrollment rolls, verifying beneficiary addresses, and making sure only eligible Americans receive benefits 

FACT: The OBBBA protects vital programs like SNAP for Americans and rewards states for making proper payments. 

1. Establishes a new state matching requirement based on a state’s payment error rate (percentage of payments that are processed incorrectly, either overpaying or underpaying a recipient)
2. If a state maintains a payment error rate of less than 6%, the entirety of the SNAP benefit is covered by federal funding, which rewards well managed states for making proper payments and holds poorly managed states accountable  

MYTH: The OBBBA does little to address the needs of our rural communities and farmers.  

FACT: The OBBBA is a lifeline to rural America. 

1. Permanently protects over 96% of family-owned farms and ranches in the U.S. from the death tax and secures the tools needed for them to invest, grow, and pass on their land to future generations
2. Raises the federal threshold for the death tax to $15 million individually and $30 million for married couples  
3. Makes the 20% Qualified Business Income deduction permanent, which will protect the 98% of American farms that operate as pass-through businesses from the $2,500 annual tax hike if the OBBBA did not pass
4. Reduces taxes on agricultural land and interest on production loans, helping ensure farmland stays in use and affordable for the next generation of Americans
5. Permanently doubles Section 179 expensing to $2.5 million and allows immediate expensing of 100% of equipment and new production facilities
6. Establishes Opportunity Zones (OZs) as viable opportunities for smaller communities by unlocking $100 billion in private investment to revitalize small towns, not just urban centers
7. Provides vital investments in the farm safety net, the Specialty Crop Research Initiative, and Specialty Crop Block Grants 

MYTH: The OBBBA funding for Homeland Security is not necessary since President Trump has already secured the border.  

FACT: Border security is not a one-time fix, it requires long-term, comprehensive investments. 

1. Provides over $170 billion in multi-year funding to agencies like U.S. Customs and Border Protection (CBP), Immigration and Customs Enforcement (ICE), and the Department of Justice (DOJ) to increase manpower, build infrastructure, and deploy modern technology to keep our homeland safe
2. Includes $46.5 billion for wall construction, access roads, and sensors, plus another $6.2 billion for surveillance, vetting, and inspection equipment to prevent illegal crossings before they happen
3. Provides $4.1 billion to hire and train new Border Patrol agents, air and marine officers, and CBP support staff – closing enforcement gaps and increasing operational strength at the southern border
4. Designates $45 billion to expand detention centers and $30 billion for ICE to hire agents, upgrade facilities, and carry out lawful enforcement – including expanded 287(g) cooperation agreements with local law enforcement
5. Reimburses local law enforcement agencies who shouldered the brunt of the Biden border crisis, empowering them to assist in federal efforts without draining local resource by creating two new grant programs, the State Border Security Reinforcement Fund and the BIDEN Reimbursement Fund
6. Invests $3.3 billion into hiring immigration judges and prosecutors to address the backlog in our immigration courts
7. Gives agencies flexibility to plan and execute missions without disruptions by providing funding through Fiscal Year 2029