This tax season, millions of American families are seeing larger refunds thanks to the Working Families Tax Cut. The law provides targeted relief through a more generous child tax credit, higher standard deduction, expanded state and local tax deduction caps, and new deductions for tips and overtime. Because these changes were applied retroactively, families are benefiting from a full year of relief, increasing take-home pay and disposable income.
That extra financial flexibility matters for retail. Consumer spending drives nearly 70% of the U.S. economy, and retail alone supports 55 million jobs while contributing $5.3 trillion annually to GDP. With more funds in their pockets, families are boosting store traffic, transaction volume, and seasonal demand.
The tax cut also supports retailers directly. Permanent provisions, including the Section 199A deduction for pass-through businesses, the 21% corporate tax rate, and full expensing for domestic research and development, give businesses certainty to invest, hire, and modernize operations.
By strengthening both household finances and the business environment, the Working Families Tax Cut fuels local economies, enhances financial stability for workers, and helps retailers remain competitive.
