Bill Summary
The resolution expresses support for the "Working Families Tax Cuts," enacted by Public Law 119-21 on July 4, 2025. This legislation aims to provide substantial tax relief to working families, particularly those earning less than $400,000 annually. Key provisions include:
1. **Preventing Tax Increases**: The law prevents a significant tax hike for lower and middle-income taxpayers, estimated to be $2.6 trillion.
2. **Tax Refunds and Cuts**: For the 2025 tax year, it delivered approximately $222 billion in tax refunds, with an expected average tax cut of $3,750 for 2026. It ensures families of four earning under $73,000 generally pay no federal income tax.
3. **Targeted Relief**: The tax cuts favor lower-income families, providing a 15% reduction for the bottom 40% of earners, with the most substantial benefits for the bottom 20%.
4. **Equity in Tax Burden**: The legislation shifts the tax burden, increasing the share paid by the top 1% to nearly 40%, while decreasing the share for the remaining 99%.
5. **Specific Provisions**: It includes significant benefits like "no tax on tips" and "no tax on overtime," offering billions in relief to tipped workers and those earning overtime pay. Additional measures include deductions for auto loans, support for seniors, expansion of the child tax credit, adoption tax credit accessibility, and educational and health savings account improvements.
Overall, the resolution highlights the importance of these tax policies in supporting working families and acknowledges the significant financial relief they provide.
Possible Impacts
Here are three examples of how the "Working Families Tax Cuts" legislation could affect people:
1. **Increased Disposable Income for Low-Income Families**: The legislation ensures that families of four making under $73,000 will generally face zero federal income tax liability. This means that these families can retain more of their income, allowing them to spend on essential needs such as housing, food, and education. The anticipated average tax cut of $3,750 for the 2026 tax year will also provide additional financial relief, making day-to-day expenses more manageable and improving their overall quality of life.
2. **Support for Tipped Workers and Overtime Employees**: The provision of "no tax on tips" and "no tax on overtime" will significantly benefit millions of workers who rely on tips (e.g., restaurant waitstaff) and those who earn overtime pay. By reducing their tax burden, these workers can keep more of their earnings, which supports their financial stability, especially for those living paycheck to paycheck. The estimated $32 billion in tax relief for tipped workers and $90 billion for overtime pay highlights how this legislation directly impacts workers in lower-income brackets.
3. **Enhanced Educational Opportunities**: The expansion of 529 accounts to cover costs associated with trade schools or K-12 educational expenses allows families to save for education in a tax-advantaged way. This can make education more accessible and affordable for working families, providing them with greater options for their children's schooling. Additionally, the expansion of the child tax credit and the adoption tax credit can help families invest in their children's future, contributing to long-term financial stability and opportunities for upward mobility.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 1156 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. RES. 1156
Expressing support for tax policies that support working families.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 9, 2026
Mr. Kelly of Pennsylvania submitted the following resolution; which was
referred to the Committee on Ways and Means
_______________________________________________________________________
RESOLUTION
Expressing support for tax policies that support working families.
Whereas, on July 4, 2025, the President signed Public Law 119-21, commonly known
as the ``Working Families Tax Cuts'';
Whereas the Working Families Tax Cuts prevented a $2,600,000,000,000 tax hike on
taxpayers making less than $400,000 per year;
Whereas, for the 2025 tax year, the Working Families Tax Cuts helped deliver an
estimated $222,000,000,000 in tax refunds, putting money directly back
into Americans' wallets;
Whereas, for the 2026 tax year, the Working Families Tax Cuts are anticipated to
deliver an average tax cut of $3,750, helping make America affordable
again;
Whereas the Working Families Tax Cuts ensure that families of four making under
$73,000 will generally face zero Federal income tax liability;
Whereas the Working Families Tax Cuts will result in a 15 percent tax cut for
Americans whose income is in the bottom 40 percent, with the largest
percentage reduction going to the bottom 20 percent;
Whereas the share of total income taxes paid by Americans whose income is in the
top 1 percent will increase to nearly 40 percent as a result of the
Working Families Tax Cuts, while the share paid by Americans in the
remaining 99 percent will decrease to 60 percent;
Whereas the Working Families Tax Cuts enacted ``no tax on tips'', which will
provide millions of tipped workers with $32,000,000,000 of tax relief;
Whereas the Working Families Tax Cuts enacted ``no tax on overtime'', which will
provide hard-working Americans with a $90,000,000,000 tax cut on their
overtime pay;
Whereas the Working Families Tax Cuts provide a new deduction for interest on
auto loans for new American-made vehicles, lowering costs and helping
more Americans get behind the wheel;
Whereas the Working Families Tax Cuts honor a lifetime of hard work by American
seniors by providing them with a deduction of up to $6,000 per year;
Whereas, to date, nearly 45 percent of tax returns filed this tax season have
claimed at least one of these four new tax cuts;
Whereas the Working Families Tax Cuts help jump-start the American dream for
millions of youth by making a down payment of over $15,000,000,000 in
tax-advantaged investment accounts for American children;
Whereas the Working Families Tax Cuts permanently increase the standard
deduction, delivering $205,000,000,000 in new tax relief to the 90
percent of earners who claim it;
Whereas the Working Families Tax Cuts permanently expand the child tax credit,
increasing the maximum credit amount to $2,200 per child and ensuring
that the credit will not lose value due to inflation;
Whereas the Working Families Tax Cuts expands the accessibility of the $17,280
adoption tax credit so that all families who adopt, regardless of
income, can benefit;
Whereas the Working Families Tax Cuts expands educational freedom and choice for
working families by ensuring 529 accounts can now cover costs associated
with trade schools or K-12 educational expenses; and
Whereas the Working Families Tax Cuts expands access to health savings accounts
for more than 10 million Americans to help control health care costs and
promotes preventive care by allowing patients to pair these accounts
with innovative direct primary care and easier access to telehealth:
Now, therefore, be it
Resolved, That the House of Representatives--
(1) expresses its support for tax policies that support
working families and let them keep more of their hard-earned
money; and
(2) recognizes the significant tax relief provided by the
Working Families Tax Cuts for hardworking Americans.
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