53M Filers Claimed New Trump Tax Breaks, Treasury Says
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- Treasury reported that more than 53 million filers claimed deductions under new Trump tax breaks, including 6 million using the no-tax-on-tips provision, 21 million the overtime deduction, and 30 million older Americans the enhanced senior deduction.
- IRS data shows the average refund this season is $3,462, up 11% (about $350) from last year's $3,116, though Treasury also noted refunds are up 24% versus the four-year pre-Trump average.
- Trump told Fox Business that people are getting refunds of "$5,000, $8,000, $11,000 that they had no idea they were getting" — far above the actual $3,462 average.
- House Speaker Mike Johnson led Republican lawmakers on Capitol steps to promote "lower taxes, bigger refunds," while Rep. Pete Aguilar countered that the administration is "spending billions to bomb Iran" while cutting health care, housing, and food aid.
- Despite the law's passage and the refund increase, 7 in 10 Americans still think their taxes are too high, according to recent polling cited by the AP.
- The IRS has gone through leadership turnover and lost 27% of its workforce over the past year through cuts driven by the Department of Government Efficiency.
- Democratic lawmakers are pressing the IRS over disclosures of confidential taxpayer information to ICE under a DHS agreement to identify and deport people in the country illegally.
Why it matters: The 53 million filers represent a massive early uptake of deductions baked into the Republican tax law ahead of November's midterms, but with 7 in 10 Americans still saying their taxes are too high and average refunds at $3,462 — well below Trump's claimed $5,000-to-$11,000 range — the White House's economic message is fighting headwinds from inflation, gas prices tied to the Iran war, and the IRS-ICE data-sharing controversy.
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