The Treasury Department released a new analysis that found the majority of filers who claimed the new tax breaks enacted by Republicans last year earn less than $100,000.Republicans passed a massive tax cut bill last summer as part of the One Big Beautiful Bill Act. Most of the legislation preserved and made permanent expiring tax provisions, but it also included several tax cuts that President Donald Trump campaigned on, such as tax breaks for tips, overtime income, Social Security, and auto loans.
As the administration has worked to gin up support for the cuts, Republicans have taken to referring to the bill as the “working families tax cuts.” The Treasury analysis focused on how most of the new provisions were claimed by those earning less than $100,000 and $200,000.
“American families and workers overwhelmingly benefitted from the Working Families Tax Cuts, receiving the largest share of the historic tax relief delivered this past filing season,” said Treasury Secretary Scott Bessent.
For instance, no taxes on tips was a major campaign tax proposal.
The Treasury said that over 7.5 million filers have claimed the no-taxes-on-tips benefit, with 9 in 10 filers earning under $100,000 and 99% of them earning under $200,000 annually.
