Majority Leader | Research | The Leader Board | THE NEWSR...Skip to primary navigation Skip to content×Close THE NEWSROOMRemarks Press Releases The Leader Board Op-Eds Videos SENATE RESOURCESRepublican Senators Committees Congressional Record Congress.gov Senate Floor Webcast ABOUT LEADER THUNE×Close THE NEWSROOMRemarks Press Releases The Leader Board Op-Eds Videos SENATE RESOURCESRepublican Senators Committees Congressional Record Congress.gov Senate Floor Webcast ABOUT LEADER THUNExxsearchxMENUFacebookXInstagramFacebookXInstagramVisit Leader Thune's South Dakota Site Here THE NEWSROOMRemarks Press Releases The Leader Board Op-Eds Videos SENATE RESOURCESRepublican Senators Committees Congressional Record Congress.gov Senate Floor Webcast ABOUT LEADER THUNExxsearchxMENUHomeTHE NEWSROOMThe Leader Board01.15.26After Republican Actions to Address the Cost of Living, the Biden Inflation Crisis Is Starting to Fade In the Rearview MirrorAs Inflation Cools and Americans Start to Feel Optimistic About Their Financial Situation, More Relief Is On the Way Thanks to the Working Families Tax Cuts Law 2025 ENDED WITH COOLING INFLATION AND MORE AFFORDABLE APPLIANCES“Inflation remained relatively contained at the close of 2025…” (The Wall Street Journal: Pace of Inflation Held Steady in December; Consumer Prices Up 2.7% on Year – 1/13/26)“[Y]ear-over-year CPI inflation cooled over the course of 2025, to 2.7% in December from 3% in January.” (The Wall Street Journal: Pace of Inflation Held Steady in December; Consumer Prices Up 2.7% on Year – 1/13/26)“The picture for inflation has improved in recent months with surprisingly strong growth in productivity, which surged at a 4.9 percent annualized pace in the third quarter of last year. When businesses get more output out of each worker, they can afford to raise wages more without necessarily raising prices, and inflation in services has been gradually cooling.” (The New York Times: Inflation Ended 2025 on Subdued Note – 1/13/26)“The holidays were also a good time to purchase appliances, such as washing machines and refrigerators, prices for which dropped 4.3 percent in December and were down 1.7 percent over the year.” (The New York Times: Inflation Ended 2025 on Subdued Note – 1/13/26)Inflation was far higher during President Biden’s term compared to President Trump’s administrations:(Reuters: Tracking Trump’s economy – accessed 1/15/26)WITH TEMPERING INFLATION, AMERICANS AND SMALL BUSINESSES ARE STARTING TO REGAIN ECONOMIC OPTIMISM LOST DURING THE BIDEN YEARSThe NFIB’s monthly Small Business Optimism Index found that businesses polled “anticipate favorable economic conditions in 2026 due to waning cost pressures, easing labor challenges, and an increase in capital investments.” (NFIB: NEW NFIB SURVEY: Small Business Optimism Continues to Rise – 1/13/26)“The net percent of owners expecting better business conditions rose 9 points from November to a net 24% (seasonally adjusted), contributing the most to the rise in the Optimism Index.” (NFIB: NEW NFIB SURVEY: Small Business Optimism Continues to Rise – 1/13/26)When asked to evaluate the health of their business, 63% of respondents rated it either “excellent” or “good.” (NFIB: NEW NFIB SURVEY: Small Business Optimism Continues to Rise – 1/13/26)In addition to small businesses, American workers have positive views of the economy and their personal economic situation:61% of Americans say they are “better off” or “about the same” financially compared to one year ago, and 64% said they expect their financial situation to stay the same or be better off a year from now. (The Economist/YouGov Poll – Jan. 9-12, 2026)62% of Americans rate the economy as “fair,” “good,” or “excellent.” (The Economist/YouGov Poll – Jan. 9-12, 2026)55% of voters have greater trust in President Trump and Republicans to manage the economy than Democrats. (Harvard-Harris Poll – Dec. 2-4, 2025)In the latest Deloitte ConsumerSignals survey, Americans rated their financial well-being at a record high for the survey, with half of respondents saying they “[w]ill have enough money to live [their] best life in five years from now.” (Deloitte: ConsumerSignals – December 2025)CONTINUED RELIEF IS IN STORE FOR AMERICANS THIS YEAR THANKS TO REPUBLICANS’ WORKING FAMILIES TAX CUTSRepublicans’ Working Families Tax Cuts prioritized putting more money in Americans’ pockets:The law prevented a $4.3 trillion tax increase on the American people, including a $2.6 trillion tax hike on households earning less than $400,000 per year. (U.S. Senate Committee on Finance: Crapo Highlights Tax Wins for Hardworking Americans and Main Street – 6/28/25; The Wall Street Journal: Editorial: Republicans Reconcile on Taxes – 2/14/25; U.S. Senate Committee on Finance: Crapo: Senate Republican Plan Powers Economic Growth, Delivers Tax Relief – 6/30/25)“The average American will receive a federal tax cut of $3,752 in 2026 thanks to the bill, per an analysis from the Tax Foundation.” (Axios: How your county is affected by "big beautiful bill" tax cuts – 8/18/25)“When taxpayers file their 2025 tax returns in 2026, many will see larger refunds than in recent years. That’s due to the One Big Beautiful Bill Act (OBBBA), which reduced individual income taxes for 2025 by an estimated $144 billion.” (Tax Foundation: Tax Refunds and the One Big Beautiful Bill Act – 12/17/25)“The law provides additional tax cuts to individuals and businesses on top of TCJA extensions, including new deductions for tipped and overtime income, an expanded child tax credit and standard deduction, and permanence for 100 percent bonus depreciation and domestic research and development (R&D) expensing.” (Tax Foundation: The One Big Beautiful Bill Cuts Taxes Across the US, New Analysis Finds – 8/13/25)The Working Families Tax Cuts law also included an array of new, and newly permanent, opportunities for Americans and small businesses to get ahead:The law included a “$124 billion investment in children of low- and middle-income families, in addition to the permanent, doubled child tax credit.” (U.S. Senate Committee on Finance: Crapo Highlights Tax Wins for Hardworking Americans and Main Street – 6/28/25)“[M]ore people will be able to benefit from the triple tax-advantaged health savings account, or HSA,” “enabling millions more enrollees to open and contribute to HSAs without having to change insurance plans.” (USA Today: A favorite savings tool of financial advisers gets better with 'One Big Beautiful Bill' – 8/9/25; White House: Expansion of HSA Eligibility Under OBBB Act to Improve Marketplace Coverage, Affordability, and Access – 9/26/25)Tipped wages, “up to $25,000 for qualified tips,” are no longer taxed, benefiting millions of American service workers. (U.S. Senate Committee on Finance: Crapo Highlights Tax Wins for Hardworking Americans and Main Street – 6/28/25)Overtime wages, “up to $12,500 for hourly workers who work overtime and keep America running,” are no longer taxed, increasing labor productivity and giving millions of hourly workers more take-home pay. (U.S. Senate Committee on Finance: Crapo Highlights Tax Wins for Hardworking Americans and Main Street – 6/28/25)“Permanent small business deduction, enabling job creation and spurring local economic activity.” (U.S. Senate Committee on Finance: Working Families Tax Cuts – accessed 1/15/26)“Full expensing for new capital investments, like machinery and equipment, to boost domestic production.” (U.S. Senate Committee on Finance: One Big Beautiful Bill Act – accessed 1/15/26)“Full expensing for new factories and factory improvements to accelerate domestic manufacturing.” (U.S. Senate Committee on Finance: Working Families Tax Cuts – accessed 1/15/26)PrintEmailTweetPreviousTHE NEWSROOMSENATE RESOURCESABOUT LEADER THUNEFacebookXInstagram
