Historic Tax Day Wins
Tax Day was Wednesday, and Michigan families are finally seeing some relief thanks to the Working Families Tax Cuts. Over 53 million filers claimed at least one of the new tax cuts provided in this historic legislation. As a result, this year was the largest tax refund season in history, and the average taxpayer in Michigan saw a tax cut of $3,131, offering vital relief and allowing Michigan families to pocket more of their hard-earned money.
This historic legislation also prevented residents of Michigan’s 5th Congressional District from seeing a 27% tax hike. If not for the Working Families Tax Cuts, a family of 4 making $65,437, the median income of MI-05, would have seen a $1,240 tax increase, which equates to about 6 weeks' worth of groceries.
This legislation puts Michigan families first by offering vital economic relief, increasing take-home pay by up to $11,700, and ensuring you can keep more of your hard-earned money.
Bigger Paychecks, Bigger Refunds for Workers
After experiencing runaway inflation year after year, Americans deserve relief and policies that will allow them to keep more of their hard-earned dollars. The Working Families Tax Cuts included many provisions to deliver on the commitment made to American workers.
No Tax on Tips
No Tax on Tips is allowing Michigan's tipped workers to keep more of their hard-earned money. The provision cut taxes by $1,300 for millions of tipped workers like waitresses, delivery drivers, handymen, electricians, and barbers. No Tax on Tips is real money for real Americans, and over 6 million tipped taxpayers have benefited from this new tax relief.
No Tax on Overtime
Police officers, factory line workers, and other hourly wage earners are rewarded for their hard work thanks to the Working Families Tax Cuts delivering No Tax on Overtime. The provision boosts income for the over 80 million hourly workers by up to $1,400. When Michiganders work hard and stay late, they should be rewarded. No Tax on Overtime means more money stays in the pockets of over 25 million tax filers who earned it.
House Republicans are delivering real tax relief for working families, including those who are raising kids. The Working Families Tax Cuts help parents provide for their children and provide financial stability by:
- Doubling the Child Tax Credit to $2,200 and indexing it to inflation to support over 40 million working families
- Creating newborn savings accounts with $1,000 to set every American newborn on the path to financial security at birth
- Implementing no tax on auto loan interest to help working families purchase American-made cars
- Incentivizing employers to increase access to paid leave for workers to give parents support to care for their children without sacrificing income or career opportunities
- Increasing the Adoption Tax Credit to $5,000 and indexing it for inflation to help offset adoption costs for American families.
The Working Families Tax Cuts amount to the largest tax break in history for our nation's seniors. It provides tax relief for seniors with a new bonus deduction of $6,000 for seniors age 65 and older, or $12,000 for married seniors. This means that 88% of seniors receiving Social Security Benefits will pay no tax on their benefits under the Working Families Tax Cuts as a result of their total deductions exceeding their taxable Social Security Benefits. This extra deduction gives seniors more financial security, which they need and deserve in their retirement years.
Prioritizing Rural America
Too often, rural America is left behind by Washington. The Working Families Tax Cuts provide relief for farmers and ranchers by cutting their taxes by $10 billion and permanently extending many vital tax provisions. This includes doubling the Death Tax exemption and indexing it for inflation each year to protect family farms from the Death Tax’s 40% rate. By preventing the death tax from hitting two million family-owned farms that would otherwise see their exemptions cut in half, we can secure the legacy of family farming.
Investing in Small Businesses
This tax season, millions of small business owners saw lower taxes and more flexibility to purchase the equipment they need. Through the Working Families Tax Cuts, we made the small business deduction permanent and restored full expensing, helping job creators invest, grow, and hire. This historic legislation is giving much-needed certainty to small businesses to spur a new era of prosperity.