President Donald Trump and congressional Republicans have engineered a $100bn boost in tax refunds for 2026, aiming to win voter favor ahead of the midterm elections. The surge stems from retroactive provisions in the “One Big Beautiful Bill Act,” which expands tax cuts for middle-income households, tipped workers, and parents, while preserving benefits for high-income earners. The average refund is expected to jump by $1,000. The plan depends on the under-resourced IRS efficiently processing refunds despite staff cuts. While Republicans touted the windfall as a working families tax cut, Democrats criticized the move as a short-term political ploy that disproportionately benefits the wealthy. With the IRS under pressure and public approval of Mr. Trump’s economic leadership shaky, the GOP is banking on larger refunds to translate into electoral support.
