VIEWPOINT | Americans are enjoying lower tax bills, bigger refunds

Guest column by U.S. Senate Majority Leader John Thune (R-South Dakota)

I don’t know too many people who look forward to Tax Day, but thanks to Republicans’ landmark Working Families Tax Cuts legislation more Americans received good news when they filed their taxes this year.

Without action from Congress, the average South Dakota family would have seen a $2,500 tax hike this year. Republicans were determined to not let that happen, and our landmark legislation not only prevented that tax hike but provided additional tax relief. And as a result, the American people are seeing lower tax bills, and the average tax refund is significantly higher than last year.

The centerpiece of the Working Families Tax Cuts is permanent tax relief for middle-income Americans. In 2017, Republicans lowered tax rates across the board. Last year, we made those lower rates permanent.

We also increased the standard deduction, and we made it permanent too. And on top of that, seniors can now claim an extra $6,000 deduction to further reduce their tax burden.

As its name implies, the Working Families Tax Cuts is also about providing much-needed tax relief to Americans raising a family. After Republicans doubled the child tax credit in 2017, this bill raised it even further and permanently linked it to inflation so that its value will keep pace with the actual cost of raising kids.

This bill also created new investment accounts for parents to invest in their children’s futures and expanded 529 education savings accounts to allow them to be used for a wider variety of education expenses like tutoring, homeschool materials, and vocational training.

The Working Families Tax Cuts is also a game-changer for certain Americans who earn tips and work overtime shifts. Republicans’ landmark bill allows these hardworking people to deduct overtime and tip income and realize significant tax savings as a result. And they are already planning to put that money into their education, savings, toward groceries and rent, or to help raise their families.

In addition to the tax relief this bill provided for families, small businesses and family farms and ranches are seeing tax relief too. They benefit from lower tax rates, as well as the 20 percent 199A small business tax deduction, which is also now a permanent feature of the tax code.

Then there are the investment incentives – like 100 percent bonus depreciation and the research and development tax credit – which are permanent and already helping South Dakota businesses invest in their employees. And this bill also protects a lot more family businesses, farms, and ranches from the death tax and the costly estate planning expenses that come along with it, ensuring those enterprises can stay strong and family-run for generations to come.

Thanks to Republicans’ tax relief, Americans are keeping more of their hard-earned money, and because the Working Families Tax Cuts provides permanent tax relief to hardworking South Dakotans, you don’t have to worry about a tax hike next year or in the years to come.

John Thune is the Republican Senate leader.