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Floor Speech

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Mr. THUNE. Mr. President, last July, Republicans passed the landmark Working Families Tax Cut Act 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.

As they file their taxes this year, hard-working Americans are beginning to see just how significant the tax relief is for them.

Last week, I was home in South Dakota, and I heard directly from South Dakotans about the impact the Working Families Tax Cut Act is having in our State.

I visited manufacturing facilities. I talked to business owners. I even met with some accountants about what they are seeing as they file returns for their clients. And one thing is clear, the Working Families Tax Cut Act is working for South Dakota.

Last week, I joined a roundtable at Montgomery's in Sioux Falls by the South Dakota Retailers Association. I heard from a number of local businesses, from our car dealerships to a cupcake shop, and business owners from around South Dakota had positive things to say about the Working Families Tax Cut Act.

Todd Pharis, a Pizza Ranch franchisee in Sioux Falls, hailed the much needed certainty provided by the new tax law. Pro-growth provisions like bonus depreciation, research and development expensing, and the 199A small business deduction are now permanent, meaning businesses like Todd's can plan for the future and invest in their operations and in their employees.

Jim Lake, who owns car dealerships around South Dakota, said that 100 percent bonus depreciation enabled them to build a large addition to one of his dealerships and hire 10 new employees.

The owner of Harms Oil also talked about the significant reinvestment from bonus depreciation that benefits South Dakota businesses and the communities they serve.

Paul Forst from Agtegra Cooperative talked about how the 199A small business deduction is directly helping South Dakota farmers. He said his cooperative has opted to pass more than $100 million in 199A benefits directly to South Dakota farmers since the deduction was created in 2017, and the farmers have invested that savings in new equipment, infrastructure, and jobs.

Then there is the death tax relief that we passed. The death tax relief that we passed--I mentioned that this roundtable was at Montgomery's furniture store in Sioux Falls. And I think it is worth noting that Montgomery's has been a family-owned business since 1888, the year before South Dakota became a State. It is currently run by the fourth and fifth generations in South Dakota. The sixth generation is learning the ropes.

Family-run businesses like Montgomery's aren't unique in our State. South Dakota is home to a number of family-owned businesses and family farms and ranches that have been passed down from one generation to the next.

Thanks to the working families tax cut, hard-working 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, as well as costly estate planning expenses. That is something that matters to a lot of folks who came to the roundtable last week and for business owners, farmers, and ranchers across South Dakota.

I have talked this morning about how the working families tax cut provides tax relief to South Dakota businesses. Those benefits are significant, but I should note what most excited the business owners at last week's roundtable wasn't the tax benefits for themselves; it was the benefits that their employees and the customers are going to see.

Todd Pharis, the Pizza Ranch franchisee said this:

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, which will give our employees more money, and . . . we'll actually be able to give them more overtime.

Melissa Johnson who owns Oh My Cupcakes! in Sioux Falls said of her employees:

With the no tax on tips and no taxes on overtime, it has already resulted in [my employees] having higher tax refunds so they can buy things they need for their families. My head chef just bought a baby crib because of a higher refund . . . It's really affected my team in positive ways.

And Eric Sinclair who owns Montgomery's had this to say:

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, make their surroundings even more beautiful.

By all accounts, those bigger tax refunds are beginning to land in hard-working Americans' bank accounts. The IRS is reporting a significant increase in the average refund this year. And just recently, I got this message from a retiree in South Dakota who wrote:

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 hundreds of thousands thousandaire--just a retired senior citizen who appreciates that the middle class gets a break once in a while.

That is what the working families tax cut is all about. Whether you are a small business owner, a farmer, a rancher, or a senior citizen, or someone just trying to make ends meet and provide for your family, the working families tax cut puts more money in your pocket empowering Americans to spend, invest, and save their money how they see fit. And it is setting our country and the American people up for a much brighter future.
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