U.S. President Donald Trump delivered an address from the White House, focusing on economic issues as his approval ratings face challenges, particularly concerning inflation and the cost of living. Recent polling data indicates that 66% of surveyed U.S. adults disapprove of Trump's management of these economic concerns, a slight increase from 62% in October.
Amid rising prices impacting holiday spending, the discussion also turned to tax refunds for the upcoming filing season in 2026. According to Erica York, Vice President of Federal Tax Policy at the Tax Foundation, many taxpayers are expected to see larger refunds when they file their 2025 tax returns. This anticipated increase is attributed to the "big beautiful bill," enacted in July 2025, which included retroactive tax changes such as a higher standard deduction and an expanded child tax credit. These measures collectively reduced individual income taxes by an estimated $144 billion in 2025.
However, the IRS did not adjust withholding tables, meaning that employees will not see immediate benefits in their paychecks but will receive them in full when filing their taxes. The impact of these changes will vary among taxpayers, with those benefiting most likely to be middle- and upper-income earners.
The anticipated refund season is expected to be "exceptionally large," with the average refund in 2025 projected at $3,052, a modest increase from the previous year. Overall, Trump's address reflects ongoing economic challenges while highlighting new tax provisions that may affect taxpayers differently based on their individual circumstances.