The United States Secretary of the Treasury, Scott Bessent, announced this week that the American working class can expect to receive “substantial tax refunds” next year, ranging from $1,000 to $2,000 per household.
These tax refunds are directly related to the tax reduction measures included in the “One Big Beautiful Bill Act” (OBBBA), which President Trump signed in July.
Bessent estimated in an interview on Wednesday in Pennsylvania that the total amount of tax refunds for the first quarter of 2026 could fall between $100 billion to $150 billion. If the scale of the tax refunds is as Bessent expects, it will mark one of the most immediate and significant achievements of the current government’s tax plan.
Bessent pointed out that the tax refunds are facilitated by several provisions of the OBBBA, including automatic deductions and tax exemption for tips and overtime pay.
He emphasized that most of the working class had not adjusted their withholding amounts after the July legislation was passed. As a result, many families have overpaid taxes in the past year, leading to the substantial refunds he anticipates.
Bessent stated that the tax refunds are likely to reach individuals’ hands in the first quarter of 2026.
He expects that taxpayers, upon receiving the refund checks, will update their withholding patterns to reduce the amount of tax deducted from each paycheck. He said that once the new withholding standards are adopted, this change is expected to translate into “actual growth” of wages for millions of workers.
Kevin Hassett, the chairman of the White House Council of Economic Advisers, echoed the Treasury Secretary’s predictions. In an interview with CNBC on Monday, he stated that Americans may receive an additional $1,600 to $2,000 in income next year, primarily from tax refunds generated by the OBBBA.
According to the Treasury Department, the benefits of the OBBBA are expected to quickly manifest among taxpayers. This legislation aims to provide immediate economic support to millions of American working families through tax cuts and consumer stimulus, creating real wage growth. As the actual effects of the law begin to show in early 2026, it will become a core focus for the market and American households.
(Reference: New York Post)