As Americans file their taxes, refunds likely to face delays due to DOGE cuts
PHOENIX – On Tax Day, Senator Ruben Gallego (D-AZ) is recommitting to advancing a tax policy that supports working people over billionaires. This comes as reckless cuts by the Department of Government Efficiency (DOGE) at the Internal Revenue Service (IRS) are likely to slow customer service and delay refunds.
“Because of President Trump, Elon Musk, and their DOGE cronies, Americans will be waiting longer for their refunds so that billionaires can get away with cheating on their taxes,” said Senator Gallego. “Instead of further enriching billionaires, we should be focused on giving a tax break to the hardworking families who need it most. That’s what I’m fighting for on Tax Day and every day.”
As part of his mission to give working families a break, Senator Gallego is backing the following legislation.
The American Family Act would permanently expand the Child Tax Credit (CTC) for middle-class and low-income families. Specifically, the American Family Act would:
- Increase the value of the CTC from the current level of $2,000 per child to $6,360 for newborns, $4,320 for children ages one through six, and $3,600 for children age six through 17;
- End the longstanding, discriminatory policy that reduces the value of the CTC for low-income families, ensuring that the families of 17 million low-income children left out of the CTC under current law will receive the same credit as families in the middle class;
- Provide for monthly delivery of the credit so families have access to the credit as bills arrive; and
- Index the CTC for inflation to preserve the value of the credit moving forward.
The Child and Dependent Care Tax Credit Enhancement Act would help ease the burden of high childcare costs on working families by increasing the maximum Child and Dependent Care Tax Credit (CDCTC) to $4,000 per child, allowing families to receive up to $8,000 in tax credits to offset up to $16,000 in expenses. It would also make the credit refundable to ensure low-income working families can benefit. The credit would also be indexed to inflation to retain its value over time.
The Tax Cut for Workers Act would expand the Earned Income Tax Credit (EITC), cutting taxes for the millions of working Americans without children who currently receive a much smaller EITC than workers with children. It would also extend eligibility for the tax cut to workers under the age of 25 and over the age of 64.
The Tax Fairness for Workers Act would allow workers to deduct employment expenses such as union dues, travel, and uniform costs, restoring a deduction that was stripped by the 2017 Trump tax law.
The Tax Cuts for Veterans Act would eliminate the federal tax on military retirement benefits. An enlisted soldier, sailor, airman, marine, guardsman, or guardian who served for 20 years could save over $500 per month and over $6,000 per year.
To ensure the ultra-rich do not get richer at the expense of working people, Senator Gallego also backs the No Tax Breaks for Outsourcing Act and the No Tax Breaks for Union Busting Act.
4/15/25