U.S. Senate Majority Leader John Thune (R-S.D.) addressed the Senate floor today, discussing the effects of the Working Families Tax Cuts as tax season begins.
According to Thune, Americans are noticing smaller tax bills, larger refunds, and increased take-home pay. He highlighted that a significant aspect of the new law allows workers to deduct tips and overtime pay from their taxable income.
“Thanks to the Working Families Tax Cuts, millions of Americans who earn tips and work overtime will see tax relief on that income and save hundreds of dollars on their taxes,” Thune said.
He pointed out that six million Americans reported tips on their taxes last year. “And it’s fair to say that for many of these hardworking people, no tax on tips is a game-changer.”
Thune shared statements from workers across the country about how the changes affect them. Tyler, a waiter in Nevada, said: “It will be nice to be able, instead of saving for taxes, to be saving for our future.” Cora, who works at a restaurant in Iowa, commented: “In the service industry too, you’re always constantly worried about [what] that end of the year number is going to be … now with this we … have some relief with that too.” A waitress in California reportedly owed $900 in taxes one year.
Americans plan to use these savings for education, groceries, rent or family needs. One mother in Michigan noted she would put her savings toward raising her four children.
Thune emphasized another provision: “Republicans’ landmark tax relief bill also created a new deduction for overtime pay.” He explained that this affects professions such as police officers, firefighters, paramedics, nurses and manufacturing workers. According to Thune: “Now these hardworking Americans will be able to keep more of the money they earn when they spend extra hours away from their loved ones – often doing very challenging jobs.”
A nurse in California told Thune’s office that nurses are now requesting more overtime because there is no longer a tax on those earnings.
Thune summarized additional features included in the legislation: lower permanent tax rates; a higher standard deduction; and a $2,200 child tax credit.
He responded to criticism from Democrats who claim the bill benefits billionaires by saying: “Not a single one of them is a billionaire. They’re not millionaires either. In fact, a lot of the people who are benefiting from the Working Families Tax Cuts live paycheck to paycheck.”
Thune stated that Republicans designed this bill with middle-income Americans in mind.
As Senate Republican Whip and U.S. senator representing South Dakota,Thune serves on several committees related to finance and economic policy.He advocates for agriculture, energy policy,and economic development initiatives affecting his constituents.His official website provides information about legislative efforts and constituent services including casework assistance,support for veterans, internship opportunities,and community outreach activities. He operates offices throughout South Dakota—including Aberdeen,Rapid City, Sioux Falls—and Washington D.C.
