Trump Unveils Working Families Tax Cuts, Promising Permanent Relief and Higher Take-Home Pay

President Donald Trump has unveiled what he calls the Working Families Tax Cuts, a sweeping proposal that would make his 2017 tax cuts permanent while introducing new tax relief measures aimed at American workers and middle-income families.

According to a fact sheet released by Trump’s team, the plan seeks to prevent an across-the-board tax increase scheduled to take effect in 2026 if current tax provisions expire.

The proposal would continue lower tax rates for all income brackets and preserve the doubled standard deduction, which is used by nearly 90 percent of U.S. taxpayers.

The plan would also keep in place the expanded Child Tax Credit, a key benefit for families with children. Supporters say this would provide sustained financial relief to households facing rising living costs.

In addition to extending the 2017 tax law, the proposal introduces new tax exemptions tied to Trump’s campaign pledges. These include eliminating taxes on tips, overtime pay, Social Security benefits, and interest on car loans for American-made vehicles.

Trump’s team estimates that about 44 million working families would see an average tax cut of $1,000, while 129 million families could experience nearly $1,000 more in take-home pay each year. Families with two children are projected to receive an average tax reduction of $1,700.

The proposal also forecasts higher tax refunds, with households expected to receive an average increase of $1,000 in 2026if the plan is enacted. Overall, more than 94 percent of middle-income families are expected to benefit from the tax changes, according to the fact sheet.

Trump has framed the Working Families Tax Cuts as part of a broader effort to stimulate economic growth and increase disposable income, describing the plan as a step toward what he calls a “new golden age” for the American economy.

The proposal is expected to be a central component of Trump’s economic messaging as the debate over tax policy intensifies ahead of the next election cycle.