By Angeles Ponpa
PEORIA, Ill. (25 News) -It’s been more than a year since President Donald Trump signed the sweeping tax and spending package known as the “One Big Beautiful Bill,” but how much someone benefits depends on their income and circumstances.
The law made several tax cuts permanent from Trump’s first term and added new temporary deductions for workers and families. Part of that law includes tax changes Republicans call the “Working Families Tax Cuts.”
Those include deductions for qualified tips and overtime pay, car loan interest and an additional deduction for seniors, including social security.
Over 7.5 million filers have claimed No Tax on Tips, with an average deduction of over $7,000. More than 35 million seniors have claimed the Enhanced Deduction for Seniors, with an average deduction of over $7,500.
Now, the two congressmen representing Central Illinois, U.S. Reps Darin LaHood (R-Dunlap) and Eric Sorensen (D-Moline) disagree whether tax changes are delivering meaningful relief for working families.
LaHood said one of his goals when helping pass the legislation was how to assist private companies in hiring workers, increasing wages and reinvesting in their companies, whether it was a small company with five employees or one with thousands of workers.
“Caterpillar is having a record year this year, partially because of the ‘Working Families Tax Cuts’ bill. Their ability to reinvest in the company, hire more people, and bring in new equipment through the bonus depreciation has been very, very helpful,” said LaHood.
Also, LaHood said there was a barbershop owner who was able to hire two new barbers because of the No Tax on Tips and buy new equipment as well.
Sorensen, who voted against the bill, said the tax cuts were prioritized to help incentivize wealthier individuals and companies.
“The cost of everything has gone up, but if you’re a millionaire of billionaire, you’re fine. You’re doing great. We need to make sure that these tax cuts are connected to real working families that are in our communities,” said Sorensen.
Between tariffs, high gas prices, and the war in Iran, Sorensen said that prices have gone up. He recounted a similar story about a barbershop owner, except in this example, Sorensen said the barber works nearly six hours into her day just to pay for childcare.
“She’s got two kids, she works six hours as a barber, and then whatever else she works is her take home.” said Sorensen.
“… It’s not saying she needs a tax cut, it’s saying, ‘Where is the childcare?’ ‘Where is the help for universal pre-K?’”
LaHood acknowledges the cost of everything is still up – energy, diesel, fertilizer, groceries, childcare – but the tax cuts are a way that have helped relieve some of the cost burden on families.
“We need to focus on, obviously a winding down of the conflict in Iran, getting the Strait of Hormuz opened up. But affordability is still an issue. We are bringing down inflation, but we can do a better job on that… But from the standpoint of bringing tax relief to working families, it is being implemented,” said LaHood.
According to the U.S. Treasury Department, American families and workers claimed over $82 billion in individual relief directly from the ‘Working Families Tax Cuts.’
The data further shows tax relief was concentrated among American families and workers earning under $200,000. The government said 96% of filers receiving a tax cut earned less than $200,000, and nearly 70% of filers receiving a tax cut earned less than $100,000.
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