Working Families Tax Cut

Overview

The Working Families Tax Cut is now law! It lowers taxes for families, small businesses, farmers & ranchers, industry and blue collar workers so people get to keep more of what they earn. The goal is simple: reward hard work, make life a little more affordable, and give local businesses the chance to grow.

What the Law Delivers

Here are the biggest changes Texans will notice:

Lower Taxes on Work — Texans keep every dollar of their tips and more of their overtime pay.
Bigger Standard Deduction — Families can keep thousands more dollars tax-free.
Stronger Child Tax Credit — Parents get more money back for each child.
Permanent Small Business Relief — Local shops and family-owned companies get steady tax breaks.
Rural Investment — New incentives push jobs and dollars into small towns and farming communities.

Families

This law helps families by:

Child Tax Credit stays doubled. Parents keep getting $2,000 (now $2,500 with inflation boost) per child.
Relief for seniors. Social Security income gets new protections from taxes.
Adoption support. Bigger credits to help families afford adoption.
Childcare help. Businesses get new tax breaks if they cover childcare, which encourages more of them to help.

Small Business

Small businesses are the backbone of East Texas. This law:

Makes permanent the 20% small business tax cut (199A deduction). That means lasting relief.
Brings back full expensing. Companies can write off new equipment, research, and expansions right away.
Raises the limit for deductions. The cap on business purchases doubled, giving more room to grow.
Cuts paperwork. Resets the IRS reporting rule for online payments, making life easier for local businesses.

Rural Community

For farmers, ranchers, and small towns, the law delivers:

Family farms protected. The “Death Tax” exemption stays high so land and equipment can pass to the next generation.
Opportunity Zones expanded. Billions in private investment are now directed to rural and distressed areas.
Full expensing for agriculture. Farmers can deduct the cost of new tractors, barns, or irrigation systems in the first year.
Fairer crop programs. Updates to base acres, price protections, and crop insurance help keep farmers secure.

Resources

Want to learn more?

Press Release: Final Passage of the Working Families Tax Cut
Full Bill Text (Public Law 119-21)
County-by-County Impact in East Texas (Interactive Map)
Op-Ed: Tyler Morning Telegraph: Moran: One Big Beautiful Bowl of Soup
Hearing Clips: Families, Small Business, Workers
Additional Information from House Ways and Means Committee
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