One Year Later: Are the Working Families Tax Cuts Working? What the Latest Treasury Data Shows
One Year Later: Are the Working Families Tax Cuts Working? What the Latest Treasury Data Shows
July 7, 2026 · Matthew Dickerson · Fiscal Lab on Capitol Hill
The Working Families Tax Cuts Act was designed to keep more money in the pockets of American taxpayers, and one year in, the early numbers suggest the approach is paying off.
Fiscal Lab Senior Fellow Matt Dickerson breaks down the results of the Working Families Tax Cuts one year after it was signed into law on July 4, 2025.
Drawing on the latest Treasury Department data:
Average refunds up 11.5% to $3,276, with 69% of returns receiving a refund.
Broad-based relief: 96% of taxpayers getting a tax cut earned under $200,000, and 70% earned under $100,000.
Pro-growth provisions for investment, R&D, and expensing for new manufacturing structures.
The rollback of roughly $500 billion in green energy subsidies to help reduce the deficit.