VIEWPOINT | Restored leadership in Washington tackling cost-of-living crunch for South Dakotans

Guest column by U.S. Sen. Mike Rounds

When I travel our state, I hear it everywhere — at the grocery store, at the gas pump or over a cup of coffee. Folks want the same thing they’ve always wanted: lower prices and bigger paychecks.

The President of the United States sets the direction of our country — including the direction of our economy. For four years, we lacked leadership in the White House. That changed on Jan. 20, 2025. President Trump inherited a cost of living crisis from his predecessor. By the time President Biden left office, South Dakota families were spending over $1,000 more per month on living expenses like housing, energy and groceries compared to when he took office in January 2021.

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During President Biden’s time in office, I voted against over $5 trillion in liberal spending proposals. Reckless spending fuels inflation, and inflation is a tax on every family. Cutting taxes and controlling spending is how we bring prices down.

We’re working every day in the United States Senate to make life more affordable and to put more money back in your pocket. This past summer, we worked with President Trump to pass the Working Families Tax Cut, a package of common sense reforms designed to deliver exactly what families need: lower prices and bigger paychecks. This legislation represents the largest tax cut for the working class in American history.

Our legislation delivers on President Trump’s campaign promise of no taxes on tips and no taxes on overtime bonus pay. If you’re putting in extra hours or relying on tips to support your family, you should keep more of what you earn. Bigger paychecks start with letting workers keep more of their own money.

And speaking of bigger checks, seniors who rely on Social Security will start seeing more on their tax returns this year. While this legislation doesn’t change the Social Security program itself, we’ve added a new deductible for Americans age 65 and up. This new deduction cuts your taxable income by $6,000 for an individual and $12,000 for married couples. For most Social Security recipients, this will effectively wipe out taxes on Social Security benefits. Seniors deserve certainty and peace of mind, not another bill from Washington.

The Working Families Tax Cut also permanently doubles the Child Tax Credit from $1,000 per child to $2,000 per child, putting more money directly into the hands of parents. Raising a family isn’t cheap, and this relief helps cover the real costs families face every day — from groceries to child care to school supplies.

Finally, we doubled the exemption on the death tax. Family farms and ranches shouldn’t be forced to sell land or livestock just to pay a tax bill when a loved one passes away. This reform protects family operations and helps keep food prices lower by supporting those who grow it.

Taken together, these reforms mean lower prices, bigger paychecks and a little more breathing room at the end of the month for hard working South Dakota families.

I’ll continue working every day to make sure Washington works for South Dakota — guided by our values of hard work, honesty and common sense — and remain focused on delivering what matters most: lower prices and bigger paychecks for South Dakota families.

Sen. Mike Rounds is served as South Dakota’s 31st governor and has represented South Dakota in the United States Senate since 2015.