Just over a year ago, Congress passed landmark legislation focused on making Arkansas and America stronger, safer and more prosperous.
Now known as the Working Families Tax Cuts, the package’s biggest achievement was to stop a looming $4 trillion tax increase on hardworking men and women in our state and across the country. At a time when inflation is still too high, adding even more of a burden on Arkansans’ budgets would be disastrous.
Thankfully, we succeeded in preventing the federal government from taking an even bigger bite out of their paychecks or returns.
Our second priority was to help Americans keep even more of their hard-earned money in their pockets. That is why we included provisions such as no tax on overtime or tips, a bonus deduction for seniors on Social Security, permanently enhanced child tax credit and higher standard deduction –– by double.
In fact, 97 percent of Americans who filed taxes this year got a tax cut. An analysis by the Department of the Treasury of this past tax filing season confirmed the Working Families Tax Cuts delivered the largest share of tax relief directly to millions of low- and middle- income Americans. Of the historic refunds issued this tax season, 70 percent went to those earning less than $100,000 per year, averaging over $3,400. This was an 11 percent increase from last year.
Support for blue collar Americans was a defining feature of the bill, along with the pro-growth policies we advanced to help small businesses succeed and expand.
I am especially proud to have secured a generational investment for farmers, ranchers and rural communities by modernizing the farm safety net, which they will begin to see this fall, while raising the death tax threshold so they can have peace of mind about passing down the family farm to their children and grandchildren. We also managed to improve the disaster assistance programs they count on.
And there were even more benefits for working families that are still coming into focus as the administration implements this signature law.
One example is the Trump Accounts designed to give the youngest Americans long-term financial security. The program gives them and their families a head start in pursuing financial security through a savings and investment account that is tax-advantaged and can receive contributions from family members, employers and others.
Additionally, the law expanded access to the Pell Grant program for students pursuing the skilled trades while also allowing 529 savings to be used for trade certifications and even tools — critical financial assistance that will also benefit our economy by preparing more workers to fill in-demand jobs and build rewarding careers.
That and more is now reality thanks to the passage of this law.
It was an honor to fight for these policies and secure their enactment. Every Arkansan I interact with agrees that things still cost too much, but these economic reforms are already helping create bigger paychecks while Congress and the Trump administration pursue additional solutions to help make life more affordable.
At the same time, we have worked tirelessly to secure the border, strengthen our military and curb violent crime. Taken together, these are significant achievements in the 12 months since the Working Families Tax Cuts became the law of the land.
My colleagues and I will continue to prioritize all Americans’ prosperity and safety as this Congress proceeds.