Treasury Secretary Scott Bessent urged Americans to review their tax withholding, saying recent policy changes could increase take-home pay if adjustments are made during the year.
“If you change your withholding, you will get an automatic real wage increase on a weekly or monthly basis,” he said, adding that taxpayers would be able to "keep more of your money this calendar year."
Bessent pointed to several Trump administration-backed tax policies, including no tax on tips, no tax on overtime, tax deductions for seniors, and interest deductibility on auto loans for American-made cars.
He said more than 45 percent of filers, or about 52 million taxpayers, have benefited from at least one of those provisions, according to Treasury Department data cited during the briefing.
He said the most widely used provision was no tax on overtime, adding, “If you want to work longer hours, you get to keep more of your money.” Bessent said that about 25 million taxpayers have benefited from the new overtime policy.
Kelly Loeffler, administrator of the Small Business Administration, said the policy has also shifted worker behavior. "There is more willingness of workers to take on overtime shifts because in the past they were penalized by the tax system for taking on overtime," she said.
Bessent also linked workforce dynamics to immigration, saying that with millions of workers no longer in the U.S. labor force, overtime could help fill gaps. “What better way to fill that gap than with overtime for hardworking Americans and for them to keep more of it?” he said.
Bessent also highlighted participation in Trump Accounts, saying 5 million families have enrolled children, with 1.2 million eligible for a $1,000 seed bonus.
Tax Withholdings
Adjusting tax withholding determines how much federal income tax is withheld from each paycheck. According to the IRS, workers can update their withholding by submitting a new Form W-4 to their employer, and can use the IRS Tax Withholding Estimator to calculate the correct amount to avoid overpaying or underpaying taxes.The IRS also recommends reviewing tax withholding after major life or income changes, such as a new job, marriage, or additional income.
Adjustments can be made at any time during the year, allowing taxpayers to increase take-home pay now rather than waiting for a refund at tax time, according to the IRS.