Scott Bessent says tax changes will trigger record refund season

Treasury Secretary Scott Bessent is pushing a huge refund wave into early next year, saying Americans will receive “very large refunds” because of the One Big Beautiful Bill Act and its retroactive rules.

Scott said the law changed what people owe on this year’s income, and since nobody touched their withholding after July, the Treasury now expects $100 billion to $150 billion in refunds.

That works out to roughly $1,000 to $2,000 per home, landing in the first quarter. Scott also said workers will adjust their withholding after the refunds hit and see higher take-home pay going into 2026.

White House pushes tax changes

Scott spoke with NBC10 Philadelphia before an event promoting President Donald Trump’s economic plans. He said the OBBBA is built around lowering cost pressure on households, and the refund surge is the most visible part of that.

He said working Americans will feel the shift right away because the law applies backward on this year’s income. He also said, “Then they’ll change their withholding, and they’ll get a real increase in their wages.”

The White House is using the tax plan as one of its main economic messages going into the new year. Scott said the administration has “plenty of revenue alternatives” to keep its programs funded, even while tax relief rolls out.

He also backed Trump’s trade stance and said he wants the Supreme Court to side with the president on two tariff cases now in front of the justices. He said, “Economic security is national security. So this ruling is really a national security ruling.”

Two lawsuits are testing how far a president can go when shifting U.S. trade rules under the International Emergency Economic Powers Act.

The cases, Learning Resources Inc. v. Trump and Trump v. V.O.S. Selections Inc., were filed by a toy maker and a wine and spirits importer that say the tariffs go beyond what the law allows. Both argue the president crossed a constitutional line.

Since Trump announced his “Liberation Day” tariffs in April, the Treasury’s Customs and Certain Excise Taxes report shows duty revenue hitting $215.2 billion in fiscal 2025, which closed on Sept. 30. Since Oct. 1, the government has already collected $71 billion more. Tariffs are taxes on imported goods, and companies often push those costs onto customers through higher prices.

Crypto traders watching inflation angles know how fast this kind of thing filters into broader markets.

Trump interviews Fed candidates

Scott also said Trump is in the middle of selecting a new chair for the Federal Reserve, and two people are still in the running: Kevin Hassett and Kevin Warsh. He said Trump has been “very deliberate” and “very direct” during the meetings.

Scott said, “We had an interview last week. We may have one or two more interviews this week and next week.”

Kevin Hassett is Trump’s lead economic advisor. Kevin Warsh is a former Morgan Stanley banker who once served on the Fed Board. Scott said he has known both for more than twenty years and described them as equally capable of running monetary policy.

Whoever Trump picks will decide how rates move next year and how the government manages the bumps that come with tariffs, tax shifts, and wage changes across the country.

The Treasury is preparing for the refund surge as the OBBBA rules kick in, the Fed search wraps up, and the Supreme Court weighs Trump’s trade authority.

The whole setup lands right as refund season hits, and Scott said the first-quarter payout is on track for one of the largest refund totals the country has seen.

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