Treasury secretary defends 'working families' tax cuts and says they boosted refunds and investment

The House Ways and Means Committee heard testimony from Treasury Secretary Scott Bessant on how the administration is implementing last year’s "working families" tax law and the president’s 2027 budget proposals.

Bessant opened by highlighting filing-season figures: total refunds rose materially, the average refund increased by more than 11 percent, and Treasury data show about 62 million filers—roughly 44 percent of returns—claimed at least one of the law’s signature provisions such as no tax on tips, no tax on overtime, the enhanced senior deduction and the expanded child credit. He said just over 70 percent of filers who received cuts earned under $100,000 and that nearly six million "Trump accounts" have been opened with roughly 1.4 million eligible for the $1,000 seed contribution.

The secretary and several Republican members framed the law as targeted relief for working- and middle-income households and as part of a broader growth strategy that includes trade initiatives and regulatory rollbacks. Bessant said the package is already lifting equipment investment and manufacturing activity and that extending full expensing to factory structures is drawing onshore projects.

Democrats used their time to challenge that picture, pressing the secretary on food, fuel and housing costs and on whether tax-cut gains have been eaten away by higher prices. Ranking members said that while the tax law provided some relief, many families remain squeezed by inflation, tariffs and other cost pressures. Bessant repeatedly cited core inflation trends and pointed to recent declines in some energy benchmarks while acknowledging short-term price spikes tied to the conflict in the Middle East.

Committee members asked several implementation and distribution questions. Bessant provided the following responses during the hearing: total tax refunds paid in the season were described in testimony as approximately $325 billion; roughly 62 million filers claimed at least one priority provision; and Treasury estimates just over 70 percent of beneficiaries earn less than $100,000. On small-business provisions, he said the permanence of bonus expensing and the 199A pass-through deduction has increased certainty for investment and hiring.

Members on both sides asked about outreach to groups that may not be taking advantage of the law—for example, the secretary said Treasury is working with the Social Security Administration and community groups to notify seniors who could claim the new senior deduction. On the program of seeded accounts for children, Bessant said the administration has built online learning modules and delivery systems and that philanthropic donors have begun seeding accounts in targeted ZIP codes.

Where the hearing moved from policy to scrutiny, lawmakers pressed for follow-ups: several members asked for more state‑level breakdowns of delayed refunds, evidence that delayed refund notices were being resolved, and more detailed measures of how opportunity-zone changes will be tracked to rural projects. Bessant pledged to work with members’ offices and to provide staff‑level follow-up materials.

The session ended with the committee scheduling staff briefings and formal requests for records and additional data. Bessant closed by reiterating that Treasury sees the tax changes as part of a three‑pronged approach—tax, trade and regulatory certainty—to spur private investment and job creation.