The ‘Working Families Tax Cuts Act’ is set to deliver ‘the biggest tax refund season ever’ benefiting ‘honest, hard-working Americans’, the Trump administration has said.
Quick to point out ‘every Democrat in Congress opposed’, the act before diving in, the White House Washington’s website said that ‘millions of Americans are poised to receive significantly larger tax refunds’.
And what’s anticipated as being ‘the biggest tax refund season ever’, has resulted from Trump’s ‘Working Families Tax Cuts Act’ – also known as the ‘One Big Beautiful Bill’.
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The act was signed into law on July 4, 2025 and ‘provides broad-based tax relief for hardworking Americans’.
It’s set to ‘deliver on the president’s promise to put America first’, such as providing ‘permanent tax cuts for workers and families’ and ‘promoting economic security through new savings vehicles for American families’.The act also hopes to foster growth for small businesses and support America’s agricultural economy, alongside revive domestic manufacturing, fund educational ‘freedom’ and ‘protect American’s borders and national sovereignty’.
It’s also dedicated to providing ‘unwavering support for American families and the sanctity of life’, ‘ensuring American energy independence and global leadership’ and ‘eliminating fraud and abuse to ensure responsible use of public funds’.
« Ensuring honest, hard-working Americans keep more of what they earn, » the US Department of the Treasury’s website adds.
But how much could it actually save the ‘average taxpayer’?How much the Working Families Tax Cuts Act could save people
The White House details ‘the average taxpayer’ can ‘expect to see nearly $4,000 in total tax savings in 2026’ – to be precise, $3,750 ‘per filer’.
It forecasts there to be $100 billion in ‘total tax refunds in 2026 for American families’, $7,200 ‘higher wages per American worker’, and 7.2 million ‘American jobs protected and creates’.
« Key provisions of the bill include No Tax on Tips, No Tax on Overtime, No Tax on Social Security, a deduction for auto loan interest on Made-in-America vehicles, and much more — putting more money back in the pockets of families, workers, and seniors, » it adds.
US Department of the Treasury, Secretary Scott Bessent said of the act: « The Working Families Tax Cuts are about opening the books for the American people.
« We want Americans to see exactly how President Trump’s policies will strengthen small businesses, allow workers to keep more of their hard-earned money and spur economic growth. »
President Donald Trump’s move to rebrand the Department of Defense to the Department of War could cost taxpayers $125 million, and that’s just the start of it.
You might be wondering what is going on in Trump’s Administration when it comes to the Department of Defense’s name being changed to the Department of War.
While it was once an informal nickname, Trump signed an executive order to change it to its official secondary title in September 2025, which might just have been a costly decision.
According to Trump, the change reflected the ‘strength’ of the US, as her said, per ABC News: « I think it sends a message of victory. I think it sends a message, really a message of strength.
« We’re very strong. »
However, this rebrand is likely to cost anywhere from $10 million to $125 million, the Congressional Budget Office (CBO) estimated in a January 14 report.These figures come as the CBO revealed if the name changed stayed within Secretary of War Pete Hegseth’s office, it could be on the cheaper end of the scale. However, it also ‘could be as large as $125 million if the name change was implemented broadly and rapidly throughout the department’.
“The faster the changes were implemented, the more parts of DoD that the changes applied to, and the more complete the renaming, the costlier it would be,” the estimate added.
The CBO went on to note that if the Trump administration moves to formally rename the Department of Defense to impact all areas through legislation in Congress, the cost could be significant.
« If phased in gradually and limited to [the Office of the Secretary of Defense], incremental costs could be similar to the range of costs for an unofficial name change, » the report revealed.
« If, however, implementing agencies chose to mandate an immediate change across all materials, costs could reach hundreds of millions of dollars. »)
The CBO, said it is trying to ‘provide objective, nonpartisan information’ to Congress right now, but due to the Department of Defense allegedly not having provided details of how it has been implementing changes since the September executive order came into place, or how it plans to continue implementing changes if the new name becomes a formal change, it cannot supply a true estimate of costs.
What can been seen, in terms of changes, is that Hegseth’s office door sign has been replaced with a ‘Secretary of War’ sign and the Pentagon’s website has changed from ‘defense.gov’ to ‘war.gov’.
This Independence Day, Donald Trump has double the reason to celebrate.
That’s because today (Friday, July 4), the US president is signing off his ‘big beautiful bill,’ which was passed in Congress on Thursday (July 3).
Representatives approved the bill with a 218-214 vote.
« There can be no better birthday for America than the phenomenal victory we achieved just hours ago when Congress passed the big, beautiful bill to make America great again, » Trump told crowds at a rally in Des Moines, Iowa.
The almost 1,000-page budget revamp is set to add some $3.4 trillion to the country’s national debt (which currently stands at $36.2 trillion) over the next decade.
Among other things, it’s set to deliver tax breaks Trump promised when he was running for president in 2024, while also cutting health and food safety programmes.Tech billionaire Elon Musk is among those speaking out against the bill. The pair’s partnership has been volatile following a series of fallings out.
But the former head of the federal budget-cutting DOGE department warned Trump’s bill would ‘destroy millions of jobs in America and cause immense strategic harm to our country.’
Supporters argue permanent rate cuts will spur investment and wage growth, while critics reckon the benefits are skewed heavily toward the top one percent, widening income inequality.
Here’s a break down of what’s in the ‘Big, Beautiful Bill’ and who it impacts…
What’s in Trump’s ‘Big Beautiful Bill?’
Tax cuts
The bill will extend on the 2017 tax rate cuts Trump put forward during his first presidency, for individuals and corporations.
‘Hard working’ Americans will see an average increase in take-home pay of more $10,000 per year, according to the White House.
A 15 percent tax cut for Americans earning between $30,000 and $80,000 per year has also been promised, while overtime and tipped workers will save almost $2,000 a year.
Some 40 million families will also be supported by the child tax credit being made permanent.Welfare rollbacks
The bill will target health programme Medicaid; the largest program providing medical and health-related services to low-income people.
Some 12 million people could now be left without health insurance, according to the Congressional Budget Office.
Cuts to the Supplemental Nutrition Assistance Program (SNAP) – formerly known as food stamps – will also be enforced.
Some 42 million Americans, living across 22 million households, use SNAP, the New York Times reports.
Energy and environment
The bill will repeal several clean-energy tax credits enacted under the Biden administration, including delaying new regulations on methane emissions.
Electric vehicle tax credits are also due to be phased out by September 2025, and EV charging tax credits could be gone by summer 2026.
AI freeze
Trump’s bill originally tried to stop any state or city from making AI-specific rules for 10 years and even threatened to cut $500 million in broadband grants if they did. Almost everyone, from governors and attorneys general to some Republicans, pushed back hard, so the Senate voted 99–1 on July 1 to remove that freeze before the bill passed, as per AP news.
Because the freeze was stripped out, states like California, New York, and Colorado can keep or expand their own AI laws, and there’s no new federal AI law in this bill.
That means the US ends up with a patchwork of state rules and still needs to go through the slower normal process in Congress or federal agencies to get any nationwide AI safeguards in place.Spending increases
Billions more have been allocated to the Department of Defense, as well as another almost $50 billion for border security and ‘wall funding.’
Some $45 billion is being put towards new detention facilities, while $25 billion is going into military expansion.
There will also be bonuses for ICE and Border Patrol agents, as per the Economic Times.
What the ‘Big Beautiful Bill’ really means
So, high-Income individuals and corporations stand to gain the largest absolute tax savings thanks to reduced top rates and corporate cuts.
Middle income families, meanwhile, will receive modest rate relief, though this is offset in part by higher inflationary pressures.
Low-income Americans and vulnerable populations are hit hard, facing tighter Medicaid work requirements and reduced SNAP benefits, potentially losing coverage or assistance.
Who else has spoken out against the bill?
Thomas Massie was one of just two House Republicans who voted against the bill, and he’s voiced his criticism of Trump previously by describing the president’s decision to launch strikes in Iran as ‘not Constitutional’.
Meanwhile, Trump has branded Massie a ‘pathetic loser’, and made clear he isn’t supportive of his chances in the Republican Primary elections.
Over on X, meanwhile, Musk vowed to throw his support behind Massie during his re-election campaign. He also claimed to have donated to him.
When Massie learned he had Musk’s support, he told Fox News Digital: « Elon’s purchase of Twitter and cultivation of the X platform for free speech has already helped my cause immensely.
« It’s allowed me to bypass conventional media to refute the lies of both political parties and to provide transparency about how Congress works and what’s actually inside of the bills we vote on.
« Exposing the worst parts of the Big Beautiful Bill and reasserting Congressional War Powers has recently earned me the ire of the swamp and a fight for my re-election, but my re-election isn’t really about either of those issues specifically.
« It’s a referendum on whether members of Congress can think and act independently based on what’s best for the country, or whether all members of Congress must be reduced to rubber stamps for their respective political parties and swampy special interests.
« I’m extremely thankful to have Elon Musk’s financial assistance to continue my mission as an independent voice in Congress for my constituents. »
Alexandria Ocasio-Cortez has slammed Trump’s ‘Big Beautiful Bill’ and warns of consequences when the country ‘wakes up’.
Since Donald Trump returned to the White House for his second term in January, he’s been on a mission to rescue the economy and spark a new ‘golden age’ for the country.
To this end, he announced a series of tariff hikes on the US’ global trading partners and has been looking at slashing taxes for American workers.
Earlier this week, White House Republicans passed a legislation extending his 2017 Tax Cuts and Jobs Act to the tune of multitrillion-dollar tax breaks.
What is Trump’s ‘big, beautiful bill’?
The House launched a debate on Trump’s so-called ‘big, beautiful bill’ before midnight and by early morning on Thursday (May 22), the vote was called, 215-214, passing through by a single vote with Democrats staunchly opposed to it.
The proposed law, which will now go to the Senate, includes a raft of tax cuts, including no taxes on tips for workers in the service and beauty industries and a freeze on taxes on those working overtime, all while redirecting funds to military and border security.It would also pave the way for tax deductions on up to $10,000 in interest on auto loans for cars made on US soil and $200 taxes on gun silencers.
However, it’s touted as a temporary exemption that will come to an end in 2028 – or 2029 for the car loan interest deal.
Also on the bill is a $500 hike in child tax credit, totalling $2,500 through to 2028, and controversial changes to Medicaid and SNAP food stamp benefits to make up for scores of the lost tax revenue.
This includes more frequent eligibility checks, cuts in funds for undocumented immigrants and a ban on children and adults accessing funds for gender transition services.The Congressional Budget Office estimated 8.6 million fewer people would have healthcare coverage as a result while the changes to Medicaid, food stamps and other services pose a saving of one trillion dollars.
What has Alexandria Ocasio-Cortez said about the Big Beautiful Bill and why is she concerned?
However, not everyone is keen on the plan, with New York Democrat AOC taking the chance to criticize the move in an explosive statement on the House floor on Wednesday night.
She said the so-called ‘big beautiful bill’ will affect the healthcare of 13.7 million Americans.
Ocasio-Cortez said: « Republicans are going to try to tell you every distraction in the book from that essential number, » claiming the legislation had been compiled ‘in a matter of hours on the back of a napkin’.
Alexandria Ocasio-Cortez has issued a warning about the bill (Jacek Boczarski/Anadolu via Getty Images)
Alexandria Ocasio-Cortez has issued a warning about the bill (Jacek Boczarski/Anadolu via Getty Images)
“For my Republican colleagues who are sure what is in and not in this bill, in this process that has been this rushed, when you wake up this morning, you will realize that you voted to defund Planned Parenthood and to take away health care from 13.7 million Americans,” she continued.
“When this country wakes up in the morning, there will be consequences to pay for this. »
The CBO also said the lowest-income households in the country would see their resources decrease while higher earners would see a boost.
What other Democrats say about Trump’s tax bill
« This is one ugly bill, » House Democratic leader Hakeem Jeffries of New York added, as the opposition continue to call it a ‘big, bad bill’ or a ‘big, broken promise’.The comments come as scores of Republicans dropped their opposition to save the 1,000-page-plus Bill that is considered central to the Republican and Trump agenda.
The administration warned that ‘failure to pass [it] would be the ultimately betrayal’.
They believe the package will be ‘rocket fuel’ for the rocky US economy.
Speaker Mike Johnson said just before the vote: « To put it simply, this bill gets Americans back to winning again. »
Representative Erin Houchin also said it would ‘unlock the ‘Golden Age’ of America,’ as Trump said in his inauguration speech.
What stage is the Big Beautiful Bill up to?
House Republicans stayed up all night to debate the bill, with last-minute concessions added before it slithered through by just one vote.
Now, it will go to the Senate for consideration.
A bill must pass through both the House and Senate in order to for the President to sign it into law.
A Democratic Party strategist who made a prediction on when Donald Trump’s administration will ‘collapse’ has made a new claim on his ‘big, beautiful bill’.
Infamous political consultant, James Carville, is not one to hold back on his thoughts and more recently has been quite confident that the Trump administration will crumble. And soon.
The 80-year-old author predicted back in February that the POTUS’ approval numbers will continue on a downwards trend, ignited then when Trump signed several controversial executive orders and fired thousands of government officials at the recommendation of his former ‘First Buddy’ Elon Musk.
Carville has been so adamant that it’s toast for the Republicans that he said Democrats don’t even need to do anything but ‘play possum’ and sit back to witness the situation unfold, which he said could be in as little as 30 days.Now, he claims Democrats are in with a high chance of swooping up 40 seats in the 2026 midterms after the GOP passed Trump’s so-called ‘big beautiful bill’ which outlines sweeping tax breaks for wealthier households while axing funding for Medicaid and food stamp programs.
While Trump has defended his bill as ‘great’, Democrats – and Musk – consider otherwise.
Musk dubbed the legislation an ‘abomination’ and claims it will ‘massively increase the already gigantic budget deficit’ in the US, in turn burdening US citizens ‘with crushingly unsustainable debt.’
The Congressional Budget Office estimates the bill could add $3.3 trillion to the national debt.
Meanwhile, New York Democrat Alexandria Ocasio-Cortez claimed the bill will ‘take away healthcare’ from 13.7 million Americans and the opposition has continued to call it a ‘big, bad bill’ or a ‘big, broken promise’.
Carville’s prediction comes as it would be unprecedented for the party of the president to lose seats in the midterm.
However, he said the bill poses a major issue that could alter the course of the outcome. »Every Democrat, regardless of the ideology or their ethnicity or their regional—we can all rally around this. And we can run on this single issue all the way to 2026. And Paul is right, we’re going to pick up more than 40 House seats, I can tell you, » Carville said alongside Democratic strategist Paul Begala on CNN on Thursday.
He said he believes it will pose a ‘mass extinction event’ for Republicans in Congress.
« A lot of them are going to be extinct when people go to the polls, voting for this. I promise you. This thing is like 25, 26 points underwater already, and we haven’t even started our education program, » he added.Begala added: “Medicaid is beloved, by the way, Trump won people on Medicaid. He won their votes and you know, a good politician rewards his voters, a great politician reaches out beyond to new voters, but a stupid politician punishes his voters. »
Polls suggest Democrats would have a slight lead over Republicans in the generic ballot, with an average of 2.3 points, according to Real Clear Politics.
A second Emerson College poll of 1,000 voters between June 24 to June 25 found that on the generic ballot, 43 percent would lean toward Democrats, while 40 percent would vote for Republicans.
Carville’s forecast also comes as House Minority Leader Hakeem Jeffries said every ‘swing seat Republican who voted to gut healthcare’ by approving the bill, ‘must be held accountable in the midterm election’.
