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 Board02.03.26Republicans’ Working Families Tax Cuts Provide Relief for Workers and the Small Businesses That Employ ThemThis Tax Season, Workers and Small Businesses Are Benefiting From No Tax on Tips and Overtime, Permanent Lower Tax Rates, and More THE NEW WORKING FAMILIES TAX CUTS LAW LOWERS TAXES FOR TIPPED AND OVERTIME WORKERS AND ENSURES THEY CAN KEEP MORE MONEY IN THEIR POCKETS IN THE LONG RUN“Workers receiving their first paychecks of 2026 are finding them bigger than ever thanks to the Working Families Tax Cuts…” (U.S. Senate Committee on Finance: Working Families Tax Cuts Bring Bigger Paychecks – 1/16/26)Thanks to Republicans’ tax law, in 2026, the average tax filer will receive a federal tax cut of $3,750. (U.S. Department of the Treasury: Working Families Tax Cuts – accessed 2/2/26)Individuals making less than $50,000 per year are receiving the largest proportional benefit of Republicans’ tax cuts. (U.S. Senate Committee on Finance: One Big Beautiful Bill: New Tax Relief Overwhelmingly Benefits Working Class – 7/1/25)“The main portion of the OBBBA that is new from the TCJA extensions excludes qualified tip income from federal income tax up to $25,000 per year, and excludes qualified overtime income from federal income tax up to $12,500 for single filers and $25,000 for marriages filing jointly.” (Fox News: Thune promises 'safe streets, more money in pockets' as GOP senators hit the road to tout tax cuts – 1/26/26)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)“A single adult, making $30,000, of which $10,000 are qualified tips: Tax cut of $1,462” (U.S. Senate Committee on Finance: Working Families Tax Cuts Bring Bigger Paychecks – 1/16/26; Tax Foundation: 2026 Tax Calculator: How the One Big Beautiful Bill Act’s Tax Changes Will Affect You – 10/1/25)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)“A single adult, making $75,000, of which $10,000 is qualified overtime: Tax cut of $4,192” (U.S. Senate Committee on Finance: Working Families Tax Cuts Bring Bigger Paychecks – 1/16/26; Tax Foundation: 2026 Tax Calculator: How the One Big Beautiful Bill Act’s Tax Changes Will Affect You – 10/1/25)According to the National Restaurant Association, no tax on tips “could return up to $421 million to the pockets of restaurant workers across the country.” (WV MetroNews: Capito meets with state restaurant workers about Working Families Tax Cut – 1/25/26)“Additionally, because many of these changes took effect retroactively to the beginning of 2025, Americans will see supersized refunds this tax filing season, which the U.S. Department of the Treasury estimates will reach $100 billion in total.” (U.S. Senate Committee on Finance: Working Families Tax Cuts Bring Bigger Paychecks – 1/16/26)“Treasury Secretary Scott Bessent predicted that Americans will see ‘gigantic’ refund checks in the upcoming filing season” because many of the provisions in the Working Families Tax Cuts “applied retroactively to the beginning of [2025], and because most workers did not change their withholdings, many can expect sizable refunds in 2026.” (Fox Business: Americans will get 'gigantic' tax refund next year, Treasury Secretary says – 12/27/25)ACROSS THE COUNTRY, WORKERS AND SMALL BUSINESS LEADERS IN EVERY INDUSTRY ARE ALREADY SEEING THE BENEFITS OF THIS NEW TAX RELIEF“The restaurant industry is a powerful economic engine — generating more than $1.4 trillion in annual economic activity and employing more than 15 million people nationwide. The pro-growth tax policies in the Working Families Tax Cuts Act will make it easier to start a restaurant and will put extra money in the pockets of workers.” – National Restaurant Association Executive Vice President Sean Kennedy“Republican senators are hitting the road to sell the Working Families Tax Cuts Act in meetings with local business owners and families, Senate Majority Leader John Thune highlighted.” (Fox News: Thune promises 'safe streets, more money in pockets' as GOP senators hit the road to tout tax cuts – 1/26/26)“More than a dozen senators, including Thune, have held events in multiple states during separate trips, including to Texas, West Virginia, Arkansas, Pennsylvania, Oklahoma, Nebraska, Ohio, Florida and Louisiana.”“Thune joined [Sen. Bill] Cassidy at a restaurant in Louisiana to talk with servers and employees about how the ‘no tax on tips’ portion of the OBBBA would put more money in their pockets.” (Fox News: Thune promises 'safe streets, more money in pockets' as GOP senators hit the road to tout tax cuts – 1/26/26)In Louisiana, “Lauren Harper, who has worked in the service industry for about seven years, said the [no tax on tips] deduction made a difference this year… ‘You work very hard for that money, because you’re making $2.13 an hour. So, it’s been really nice just to have that extra little kick. I’m very thankful.’”“Harper said the boost in her tax return will benefit her and others working in the service industry. ‘A lot of my coworkers are in school and they’re working really hard. And I know that it’s difficult for them just to continue trying to work and then balance everything. So, them trying to take care of themselves and further themselves, it’s better,’ Harper said.” (WAFB Baton Rouge: Senate leaders explain ‘no tax on tips’ deduction at Baton Rouge event – 1/15/26)“Business leaders from the Choctaw Area, Del City, Harrah, Midwest City, and Spencer Chambers of Commerce gathered at HeavenLee BBQ in Choctaw, Oklahoma, which opened its doors following passage of the Working Families Tax Cut Act… Chamber members applauded [Sen. James] Lankford’s provision making full, immediate expensing permanent, allowing businesses to deduct investments in equipment and technology upfront—helping drive job creation and business expansion.” (Sen. Lankford: Lankford Joins Oklahoma Small Business Leaders to Highlight Working Families Tax Cut Act – 1/23/26)In Texas, “Garrett Yancy, general counsel for Job Construction, underscored how the construction industry will thrive with no tax burden on overtime costs. ‘No tax on overtime was a major point for our employees. We had a number of employees calling our human resources asking if that meant their paycheck was higher that week. It was a [big] hit and a meaningful contribution to our employees,’ Yancy said.” (El Paso Times: Cornyn says ‘Big Beautiful Bill’ reshapes El Paso’s economy. Here's how – 1/21/26)“A rising tide lifts all boats. That was an analogy shared by Adrian Adornetto, owner of Giacomo's and Adornetto's on Maple Avenue, and Sen. Jon Husted (R-Ohio), when Husted visited the city Jan. 23. They and several other local business owners talked about the Working Families Tax Cuts Act… and its provisions to not tax tips and overtime hours.” (Zanesville Times Recorder: Zanesville businesses expecting boost from Working Families Tax Cuts – 1/27/26)WITH A REDUCED TAX BURDEN, SMALL BUSINESSES ARE ABLE TO INCREASE WAGES FOR WORKERS, INVEST IN NEW EQUIPMENT, AND GROW THEIR CUSTOMER BASE“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 incentivizes growth in the economy by incentivizing investment in small businesses, including:“Permanent small business deduction, enabling job creation and spurring local economic activity.”“Full expensing for new capital investments, like machinery and equipment, to boost domestic production.”“Full expensing for new factories and factory improvements to accelerate domestic manufacturing.”“Restor[ing] interest deductibility to a globally competitive standard to help finance critical domestic investments.” (U.S. Senate Committee on Finance: Working Families Tax Cuts – accessed 2/3/26)This growth fuels higher wages and job creation:“Real wages for workers will increase by as much as $7,200 per year.”“After-tax take-home pay for a typical family with two kids will increase by as much as $10,900 per year.”“At least 1.1 percentage points added to annual real GDP growth.”“7 million jobs will be protected and created.” (White House: Analysis: One Big Beautiful Bill Will Boost Wages, Lower Deficits – 6/25/25)“The Tax Foundation also estimates that the bill will create roughly 938,000 full-time equivalent jobs over the long run.” (Fox News: Thune promises 'safe streets, more money in pockets' as GOP senators hit the road to tout tax cuts – 1/26/26)PrintEmailTweetPreviousTHE NEWSROOMSENATE RESOURCESABOUT LEADER THUNEFacebookXInstagram
