Under President Donald Trump’s “One Big, Beautiful Bill,” families making between $30,000 and $80,000 would pay about 15% less in taxes in 2027, according to a new report by the nonpartisan Joint Committee on Taxation.
This new report provides a credible witness because the Joint Committee on Taxation (JCT) is a bipartisan congressional committee established under the Internal Revenue Code. Ten members compose the committee: five from the Senate Finance Committee and five from the House Ways and Means Committee.
These findings provide important pushback to falsehoods about who benefits from extending and expanding the tax cuts. During a committee markup of the tax provisions, Democrats claimed only the billionaires would benefit, not the poor and working classes.
The pending tax reform bill keeps the lowered income tax rates intact for all tax brackets. It would also expand the Child Tax Credit and standard deduction. In addition, it would enact new tax relief for tips, overtime pay, seniors, and car loan interest payments. These are provisions for working-class families.
The U.S. House Ways and Means Committee, led by Rep. Jason Smith (R-Mo.), noted that the bill expands and makes permanent the 199A small business deduction to 23%, which would create an estimated 1 million new Main Street small business jobs annually and generate $750 billion in economic growth at American small businesses.
Ways and Means estimated that the bill would save the average American family $1,700—worth nine weeks of groceries.
The bill would increase real annual take-home pay for a median-income household with two children by roughly $4,000 to $5,000. This would effectively raise annual real wages by $2,100 to $3,300 per worker, thanks to the economic growth sparked by the bill.
Independent Women’s recent polling found 78% of women, 78% of Independents, 72% of 18- to 34-year-olds, and 79% of all voters say that Congress should pass legislation to extend the 2017 tax cuts so individual income taxes don’t rise beginning January 2026.
The “One, Big, Beautiful Bill” will let families earn more wages and pay less taxes. We hope Congress won’t miss a chance to relieve Americans and help small businesses with the stimulus to grow.