National Economic Council Director Kevin Hassett predicted that U.S. taxpayers will “see the biggest tax refund” next year.
Hassett appeared on Fox News Sunday to credit the One Big Beautiful Bill act for his optimism about taxes in 2026.
“There’s so much good news in the new year because you’re going to see the biggest tax refund season of all time. The ‘big, beautiful bill’ was passed in July. You know, the IRS didn’t have time to change all the forms, and so now everybody’s going to get huge tax refunds if they were overtime workers, if they’re seniors, if they, you know, had tip income,” Hassett told host Shannon Bream.
“All those things are going to be refunded — those taxes — this year when they file for their taxes,” he added.
However, several states across the nation have opted out of enforcing the bill’s no-tax-on-tips or overtime provisions in an effort to keep their budgets in the black. These states instead passed legislation to “decouple” from the federal government on certain tax provisions, spurning tax relief for residents working for tips or overtime, but also saving money for their budgets.
DON’T REVERSE PROGRESS ON DEFICITS WITH NEW SPENDING
Meanwhile, it is still uncertain what other states may do about the new provisions. Georgia, Maryland, and South Carolina have not yet addressed the tax relief, but are likely to do so next year.
As the Republicans have the majority in the House and the Senate currently, there is an additional effort to eliminate the capital gains tax on home sales.
