The “Working Families Tax Cuts: Ushering in a New Golden Age” platform is a U.S. Treasury web hub that explains President Trump’s 2025 tax law (the One Big Beautiful Bill Act/Working Families Tax Cuts) in plain language. It highlights key policies, headline numbers (like the average tax cut per filer), and links to related press releases, fact sheets, and stories. You can access it at Treasury’s dedicated site:
The July 4, 2025 law is the One Big Beautiful Bill Act (Public Law 119‑21), which Treasury brands as part of the Working Families Tax Cuts. Key provisions for individuals and families include:
• Making most 2017 Tax Cuts and Jobs Act (TCJA) individual tax cuts permanent – lower tax brackets, a larger standard deduction, and a higher child tax credit continue beyond 2025 instead of expiring, preventing tax increases for most filers in 2026. • Higher standard deduction amounts – for example, in 2026 the standard deduction is $32,200 for married joint filers, $16,100 for singles, and $24,150 for heads of household, higher than 2025 levels. • New or expanded deductions for workers (2025–2028): – “No tax on tips”: a deduction for up to $25,000 of qualified tips for workers in IRS‑defined tipped occupations, subject to income phase‑outs. – “No tax on overtime”: a deduction for the overtime premium portion of pay, up to $12,500 ($25,000 for joint filers), also with income phase‑outs. – “No tax on car loan interest”: a deduction for up to $10,000 of interest on loans for qualifying vehicles assembled in the U.S., with income limits. • Additional deduction for seniors (2025–2028): individuals age 65+ can claim an extra $6,000 deduction ($12,000 for two qualifying spouses), on top of the regular senior standard deduction, phased out above certain incomes. • Trump Accounts: creation of new child savings/retirement accounts (see Q3) with government seed money for eligible children and tax‑favored contributions. • Family‑related changes such as a partially refundable adoption credit (up to $5,000 of the credit can be refundable after 2024) and enhanced credits for employer‑provided childcare.
These provisions reduce taxable income for many households, raise after‑tax pay, and are marketed by Treasury as “Working Families Tax Cuts.”
Under the July 4, 2025 One Big Beautiful Bill Act, most of the “permanent” tax cuts for individuals take effect starting with tax year 2025 and continue beyond 2025 instead of expiring. That means:
• Timing: – The law “takes effect in 2025,” so lower tax rates, higher standard deductions, and new worker deductions apply to income earned in 2025 and later. – Taxpayers will see the impact in their paychecks as employers adjust withholding in late 2025 and fully in 2026, and in “bigger tax refunds” when they file 2025 returns in early 2026. – The permanency mainly refers to extending TCJA individual and business provisions that otherwise would have ended after 2025, so their lower‑tax structure continues into 2026 and beyond.
• Who sees bigger refunds and paychecks in 2026: – Most filers who would have faced a tax hike from TCJA expiration—about 62% of taxpayers—avoid that increase and instead pay less tax, on average. – Households benefiting from new targeted deductions (tipped workers, overtime workers, car buyers with qualifying loans, seniors 65+, parents using Trump Accounts, and families claiming the expanded child tax credit and adoption credit) will see additional tax reductions. – The Tax Foundation estimates that extending the TCJA provisions alone raises average after‑tax incomes by about 2.9–3.4% in 2026, with tax cuts spread across the income distribution.
Thus, the Treasury’s claim of “bigger tax refunds and bigger paychecks in 2026” refers primarily to the 2025 tax changes showing up in 2025–26 paychecks and in the 2025 returns filed in 2026, plus the fact that TCJA cuts do not expire in 2026.
Trump Accounts are new, tax‑advantaged savings accounts for children created by the Working Families Tax Cuts/One Big Beautiful Bill Act. Key features:
• Structure – They are a new type of individual retirement account (IRA) for children under age 18 with a Social Security number, generally opened by a parent or guardian. – Contributions cannot begin before July 4, 2026. – Total contributions (from family, employers, and others) are limited to $5,000 per child per year (indexed for inflation). Employers may contribute up to $2,500 per year for an employee or their dependent, and employer contributions are not taxable income to the employee. – Investment is restricted to mutual funds or ETFs tracking broad U.S. stock indexes (e.g., S&P 500). – Withdrawals are generally barred until January 1 of the year the child turns 18, after which the account is treated like a traditional IRA (subject to normal IRA tax and penalty rules).
• Government seed money – For children born between January 1, 2025, and December 31, 2028, who are U.S. citizens and for whom an election is made, the federal government makes a one‑time $1,000 “pilot program” contribution.
• Intended effect on economic security – By giving children an early, invested nest egg and enabling ongoing tax‑favored saving (including from employers), the accounts aim to build long‑term wealth and retirement savings starting in childhood. Analyses describe them as a federal “child savings account” program meant to boost asset‑building and financial security over a lifetime.
In this Treasury announcement, “Funding School Choice and Rooting out DEI” is a political slogan, not a specific tax provision name. It signals two related policy goals the administration associates with the Working Families Tax Cuts package:
• “Funding school choice” refers to steering federal support toward alternatives to traditional public schools (such as private or religious K–12 options). In the tax law, the main directly related piece is a new federal income‑tax credit—starting in 2027—for individual donations to Scholarship Granting Organizations (SGOs) that fund K–12 scholarships. This credit effectively subsidizes private‑school scholarships via the tax code. • “Rooting out DEI” refers to efforts to reduce or eliminate federal support for diversity, equity, and inclusion (DEI) initiatives, especially in education and other federally funded programs. The phrase appears in messaging (including Treasury’s and White House communications) but is not tied to a single, clearly labeled “DEI” section of the tax code. Instead, it reflects a broader intent to reshape where federal dollars and tax incentives flow—for example, favoring school‑choice scholarships and limiting or redirecting funds and rules associated with DEI‑branded programs.
Publicly available official tax summaries (such as IRS guidance on the One Big Beautiful Bill) describe the scholarship credit and other education‑related provisions but do not spell out a detailed, technical definition of “rooting out DEI,” so the exact operational changes to DEI‑related funding are only partly discernible from tax materials alone.
Yes. The IRS, as Treasury’s tax agency, is responsible for administering and enforcing the Working Families Tax Cuts/One Big Beautiful Bill Act provisions, and both Treasury and the IRS are already issuing guidance for taxpayers and businesses.
Evidence: • The IRS has a central “One, Big, Beautiful Bill provisions” page that explains the law, effective dates, and implementation details for individual, business, and other provisions. • Treasury and IRS have issued specific notices and news releases—for example, guidance on Trump Accounts (Notice 2025‑68, IR‑2025‑117), new worker deductions for tips and overtime, vehicle‑loan interest deductions, HSA changes, and more—along with draft and final forms (such as draft Form 4547 for Trump Account elections).
Taxpayers will rely on this IRS/Treasury guidance, updated forms, and instructions when filing returns and adjusting withholding for the new rules.
Independent budget estimates show the “permanent” tax cuts substantially reduce federal revenue and widen deficits, even after accounting for some offsetting spending cuts and economic growth.
• Revenue and deficit impact of the 2025 law – The Tax Foundation estimates the One Big Beautiful Bill Act’s tax provisions will cut federal tax revenue by about $5.0 trillion over 2025–2034 on a conventional basis. After incorporating macroeconomic feedback, they still lower revenue by about $4.1 trillion and, combined with roughly $1.1 trillion in spending cuts, increase federal deficits by about $3.8 trillion including added interest over that decade. – The Committee for a Responsible Federal Budget, using Congressional Budget Office (CBO) scoring, finds the House version of the bill would add about $2.4 trillion to primary deficits and around $3.0 trillion to the debt including interest over 2025–2034—and roughly $5.0 trillion to the debt if its temporary provisions are later extended permanently.
• Effect of TCJA permanence alone – Separately, the Tax Foundation estimates that making the expiring 2017 TCJA provisions permanent would reduce revenues by about $4.5 trillion over 2025–2034, with economic growth offsetting only about 16% of that loss. Long‑run GDP would be about 1.1% higher, but higher debt and interest costs mean only a smaller gain in national income.
In summary, the permanent tax cuts are projected to raise deficits and debt substantially, putting additional pressure on the federal budget, even though supporters argue they will modestly boost long‑run economic growth.