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Tax Refunds Could Surge, But Costs May Offset Gains

2/8/2026

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Story summary
  • The White House, led by U.S. President Donald Trump, says average tax refunds could rise by about $1,000 this spring because of recent tax cuts, aiming to boost GOP prospects ahead of the November elections.
  • Skeptics warn that high living costs could absorb these refunds, leaving voters dissatisfied.
  • The Internal Revenue Service faces staffing shortages and a backlog of claims, which complicates timely refunds.