President Donald Trump told a Cabinet meeting on Tuesday that American taxpayers are on track to receive record-breaking refunds when the next tax-filing season begins.
“Next year’s projected to be the largest tax refund season ever,” Trump said, attributing the boost to the One Big Beautiful Bill Act (OBBBA), according to FOX Business.
The legislation extended the tax cuts from his first term, which were set to expire this year, and included additional tax reforms and spending measures.
Treasury Secretary Scott Bessent backed up Trump’s claims, noting that several OBBBA provisions retroactive to 2025 could provide substantial relief for taxpayers in the first quarter of 2026.
“The best is yet to come for the U.S. economy,” Bessent said. He highlighted measures such as tax relief for Social Security recipients, workers earning tips or overtime, and deductions for auto loans on U.S.-made vehicles.
“The best way to address the affordability crisis is to give Americans more money in their pockets, which is what this bill has done,” Bessent added. “We’re going to see real wage increases. I think next year is going to be a fantastic year.”
Trump also emphasized plans to give Americans “tariff dividends,” funded by revenues collected from tariffs imposed under his administration.
“We’re going to be giving back refunds out of the tariffs because we’ve taken in literally trillions of dollars, and we’re going to be giving a nice dividend to the people, in addition to reducing the debt,” he said.
Trump suggested that, in the near future, income taxes could be drastically reduced or potentially eliminated due to the government’s strong revenue intake.
Previously, Trump proposed $2,000 dividend payments for low- and middle-income Americans, contingent on Congressional approval.
Nonpartisan analysts at the Committee for a Responsible Federal Budget estimated that such payments could cost $600 billion annually and add $6 trillion to the national debt over 10 years.
By comparison, tariffs currently generate a relatively modest portion of federal revenue—about $195 billion in fiscal year 2025, roughly 3.7% of total receipts.
Despite the potential financial hurdles, Trump and Bessent painted an optimistic picture of 2026, promising taxpayers larger refunds and a new flow of dividend payments as key measures to ease the cost-of-living strain.