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President Donald Trump and the Republican Party are banking on increased tax refunds to sway voters their way ahead of the November midterm elections. As reported by The Wall Street Journal, the GOP-crafted ‘Big, Beautiful Bill’ was designed to deliver an impressive $100 billion more in tax refunds compared to the previous year. The timing of the original tax legislation, passed in December 2017, meant that taxpayers didn’t see the benefits in their 2018 refunds, a factor that contributed to a ‘blue wave’ that year, allowing Democrats to regain control of the House.
Retroactive relief
To avoid a repeat of that scenario, Trump aimed to have the new bill passed by July 4 of the previous year, ensuring that the tax cuts would be retroactively applied to 2025. The Treasury Department has projected that average refunds would be approximately $1,000 higher. In 2025, the average refund stood at about $3,167. Representative Nick LaLota candidly acknowledged the strategic timing, stating, “Hell yeah, that was intentional. We knew that if we were going to put up a fight, we wanted to get that relief to our constituents right away.”
Toss-up tactics
The ‘Big, Beautiful Bill’ extends tax cuts previously criticized for benefiting the wealthy and introduces new deductions for tips, overtime wages, and car-loan interest. Tipped workers will benefit from reduced taxation on their tips, with the first $25,000 being tax-free. The bill also includes new deductions for seniors, a significant voting demographic, and slightly increases the child tax credit from $2,000 to $2,200 for parents.
‘It is the sort of short-term fix that someone like Donald Trump absolutely loves,’ Democratic Representative Brendan Boyle told the Journal. Boyle pointed to the legislation’s cuts into healthcare spending, an even more potent issue given the GOP-led Congress has refused to extend the COVID-era Obamacare subsidies. ‘That, combined with the overall lack of affordability, will continue to be, by far, the biggest issue in this election, and that’s something they just can’t get away from,’ Boyle added.
Trump has repeatedly pointed to lower gas prices and has pushed that groceries are cheaper, despite the Bureau of Labor Statistics saying that grocery prices have climbed 2.4 percent over the year, ending in December. Agriculture Secretary Brooke Rollins was mocked earlier this month for saying what Americans could eat for $3 – ‘a piece of chicken, a piece of broccoli, corn tortilla, and one other thing.’ However, Republicans may have another trick up their sleeves closer to the election – the long-promised tariff refund checks sent out to American households. ‘President Trump’s tariffs are raising historic revenue for the federal government, and the Administration remains committed to putting that money to good use for the American people,’ a White House official told the Daily Mail on Tuesday.