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New Tax Cuts Act Promises Jobs, Sparks Debt Concerns

1/27/2026

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Story summary
  • The Working Families Tax Cuts Act would eliminate taxes on tips and overtime, saving the average taxpayer $3,752 in 2026 after it was signed into law on July 4, 2025.
  • Senate Majority Leader John Thune highlighted the bill's benefits during events in Texas and Florida.
  • Critics warn it could increase national debt and shift Medicaid costs to states.
  • Supporters say the act will create about 938,000 jobs long term.