One Year In, the Largest Tax Cuts in American History Are Delivering for Iowa

IOWA - Congresswoman Mariannette Miller-Meeks (IA-01) today marked the one-year anniversary of the Working Families Tax Cuts becoming law, highlighting the real savings and tax relief the legislation has delivered for Iowa families, workers, farmers, seniors, and small businesses.

Signed into law one year ago, the Working Families Tax Cuts have lowered taxes, increased take-home pay, and helped hardworking Americans keep more of what they earn.

"One year later, the Working Families Tax Cuts are delivering exactly what they promised: lower taxes, bigger paychecks, stronger family budgets, and real savings for hardworking Americans," said Congresswoman Miller-Meeks. "Whether it is tax relief for seniors, workers earning overtime, families raising children, or farmers passing their operations on to the next generation, these policies are making a real difference. I will continue fighting for policies that put Iowans first."

Background

One year after becoming law, the Working Families Tax Cuts continue to provide meaningful relief for millions of Americans through provisions including No Tax on Tips, No Tax on Overtime, tax relief for seniors, permanent protections for family farms, incentives to strengthen American manufacturing, and new $1,000 Baby Investment Accounts for eligible newborns.

Since enactment, the Working Families Tax Cuts have delivered:

• Tax refunds increased by 11%, putting more money back into the pockets of hardworking Americans.     
• No Tax on Tips: More than 7.5 million Americans have claimed the deduction, with an average tax benefit of over $7,000. By allowing workers to deduct up to $25,000 in qualified tip income, servers, bartenders, hospitality workers, and others who rely on tips are keeping more of what they earn.
• No Tax on Overtime: More than 29 million Americans have claimed the deduction, saving an average of over $3,100. This provision helps police officers, firefighters, nurses, EMTs, corrections officers, and countless other workers keep more of their overtime pay.
• Social Security Tax Deduction: More than 35 million seniors have claimed the new deduction, receiving an average tax benefit of over $7,500. Eligible seniors can claim a $6,000 deduction, while married couples can receive up to $12,000, helping them afford everyday necessities and enjoy greater peace of mind after a lifetime of hard work.
• Enhanced Child Tax Credit: Nearly 40 million families have claimed the expanded $2,200 Child Tax Credit, helping parents cover the costs of raising children and providing additional financial stability.
• Doubled Standard Deduction: The law preserves the doubled standard deduction, benefiting over 90% of taxpayers and allowing families to keep more of their hard-earned income.
• Protection for Family Farms: Delivered permanent relief from the 'Death Tax' and helps protect family farms ensuring there farms are passed down to kids and grandkids not sold to pay the IRS. 
• No Tax on Car Loan Interest: Allows eligible Americans to deduct interest on qualifying loans for new American-made vehicles.
• Small Business Tax Deduction: Makes the 20% small business deduction permanent, giving Main Street businesses the certainty they need to invest, hire, and grow.
• $1,000 Baby Investment Accounts: Provides eligible newborns with a $1,000 investment account, helping families begin building long-term financial security from the start of their child’s life.