U.S. Senate Majority Leader John Thune (R-S.D.) addressed the Senate to discuss the impact of the Working Families Tax Cuts, which became law last July. Thune stated that the legislation is providing tax relief and economic benefits to South Dakotans.
According to Thune, “Mr. President, last July Republicans passed the landmark Working Families Tax Cuts into law. This is a bill that is full of wins for the American people. It delivers safer streets. Puts more money in Americans’ pockets. And it creates new opportunities to get ahead.”
Thune described his recent visit to South Dakota, where he met with business owners, manufacturers, and accountants to learn about how the tax cuts are affecting their operations and employees. He reported positive feedback from various sectors during a roundtable at Montgomery’s in Sioux Falls hosted by the South Dakota Retailers Association.
He shared comments from local business owners regarding provisions such as bonus depreciation, research and development expensing, and the 199A small business deduction now being permanent features of tax law. Todd Pharis, a Pizza Ranch franchisee in Sioux Falls, highlighted the certainty provided by these changes for future planning and investment.
Jim Lake, owner of several car dealerships in South Dakota, noted that 100 percent bonus depreciation enabled his company to expand a dealership and hire additional staff. The owner of Harms Oil also pointed out investments made possible by bonus depreciation.
Paul Forst from Agtegra Cooperative discussed how the 199A small business deduction has allowed his cooperative to pass over $100 million in benefits directly to farmers since 2017. According to Forst, this savings has been reinvested into equipment, infrastructure, and jobs.
Thune also referenced relief from estate taxes included in the legislation: “Family-run businesses like Montgomery’s aren’t unique in our state… thanks to the Working Families Tax Cuts, hardworking Americans who run their own businesses are breathing a sigh of relief because this landmark bill protects a lot more family-owned businesses from a potentially devastating death tax bill when the business passes to the next generation…”
The senator emphasized that while businesses benefit from these provisions, owners were most excited about advantages for their employees and customers. He quoted Todd Pharis: “‘The two that are going to help us the most, or at least our employees, are the no tax on tips, and the no tax on overtime…’”
Melissa Johnson of Oh My Cupcakes! said: “‘With the no tax on tips and no taxes on overtime…it has already resulted in [my employees] having higher tax refunds so that they can buy things they need for their families. My head chef just bought a baby crib because of her higher refund … It’s really affected my team in positive ways.’”
Eric Sinclair from Montgomery’s added: “‘Anytime the general consumer can get more back in their pocket with tax cuts, we hope they come into our stores and maybe buy something nice for their home…’”
Thune mentioned reports from retirees experiencing larger refunds this year: “‘Just did my income taxes. Putting more money in my pocket than last year … I am not a billionaire or a millionaire or even a 100’s of thousands thousandaire – just a retired senior citizen who appreciates that the middle class gets a break once in a while.’”
Thune represents all residents of South Dakota as U.S. Senator according to his official website. His work includes outreach efforts within communities and support for veterans as detailed online. He focuses on issues such as agriculture, energy policy, economic development and serves on multiple Senate committees including Finance; Agriculture, Nutrition and Forestry; Commerce; Science; and Transportation.
In closing his remarks on tax reform’s impact across different groups—businesses owners, farmers, ranchers or retirees—Thune said: “And whether you’re a small business owner, a farmer, a rancher, or a senior citizen…or someone just trying to make ends meet…Working Families Tax Cuts puts more money in your pocket…”
