Treasury Secretary touts "substantial refunds" as Trump tax cuts take effect
By isabelle // 2026-01-29
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  • Treasury Secretary Bessent announces larger tax refunds and paychecks from new laws.
  • The administration is promoting these benefits ahead of the 2026 midterm elections.
  • Key policies include permanent tax cuts and no taxes on tips or overtime.
  • Bessent forecasts a sustained, non-inflationary economic boom for 2026.
  • Democrats counter by criticizing the administration over high housing costs.
As Americans begin filing their 2025 taxes, Treasury Secretary Scott Bessent announced Monday that the economic policies signed into law last year are now delivering tangible financial benefits to working families. In a television appearance, Bessent forecast a surge in tax refunds and bigger paychecks, framing it as the start of a sustained economic upswing driven by the Trump administration’s agenda. This push centers on the One Big Beautiful Bill Act, a sweeping legislative package signed on July 4 that the administration is now showcasing ahead of the 2026 midterm elections. "President Trump’s policies that we put in place last year are really starting to kick in now," Bessent said on Fox News’s "Hannity." He added, "We’re [going to] see substantial refunds for working Americans. They’re [going to] change their withholding and have bigger take-home pay every two weeks, every month. So, it’s really an exciting time." The Internal Revenue Service anticipates about 164 million individual tax returns will be filed this season, which opened January 26. While last year’s average refund was $3,167, administration officials and congressional Republicans are promising significantly larger returns for 2026. House Ways and Means Committee Chairman Jason Smith, R-Mo., projected an additional $91 billion in refunds this year.

A multi-front political campaign

This tax season is not just an administrative event but a core part of the administration’s political strategy. Republican senators are touring the country to promote the law’s benefits. Senate Majority Leader John Thune told Fox News Digital, "When Joe Biden and Democrats had unified control of government, they created open borders and high prices. Republicans, on the other hand, have delivered safe streets, more money in pockets, and new opportunities to get ahead through the historic Working Families Tax Cuts." The Treasury Department has launched a public platform titled "Working Families Tax Cuts: Ushering in a New Golden Age" to detail the law’s provisions. These include permanent tax cuts, the exclusion of taxes on tip and overtime income for many workers, an expanded Child Tax Credit, and a major investment in border security. The Tax Foundation estimates the law will mean an average tax cut of $3,752 per taxpayer in 2026.

Forecasting a "non-inflationary boom"

Beyond immediate refunds, Bessent painted an optimistic picture of the broader economy. He pointed to easing prices in key areas as signs of improving affordability. "I think we’re [going to] have a boom in 2026," Bessent said. "And the important thing here is it’s [going to] be a non-inflationary boom, and I think it could really extend for several years." This optimism stands in direct contrast to the criticism from Democratic leaders, who have blamed the administration for an "affordability crisis." Senate Minority Leader Chuck Schumer (D-N.Y.) said his party will make housing costs a national priority, arguing that "rent is too high and eating away at the ability for people to save money to own a home." The political battle lines are clearly drawn. The administration and its allies are betting that voters will feel the impact of larger refunds and slightly fatter paychecks, translating into political support. As the 2026 elections approach, the debate over who is truly delivering for working families will hinge on the numbers that arrive in bank accounts this spring. The success of the "One Big Beautiful Bill" may ultimately be measured not in press releases, but in the economic confidence of millions of taxpayers filing their returns. Sources for this article include: TheEpochTimes.com FoxBusiness.com Home.Treasury.gov FoxNews.com
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