Less for the IRS, More for You
By Sen. John Thune
One year ago, on July 4, 2025, President Trump signed the Working Families Tax Cuts into law. Thanks to this Republican tax relief bill, 97 percent of Americans who filed their taxes this year saw a tax cut. They saw larger tax refunds, smaller tax bills, and collectively saved $82 billion that they would have otherwise had to send to the IRS if not for the Working Families Tax Cuts – and that’s just the beginning of its impact.
At the heart of this bill was making Republicans’ 2017 individual tax relief permanent. Without action from Congress, the tax savings hardworking Americans have enjoyed since 2017 would have expired, and a typical family in South Dakota would have seen a $2,500 tax hike this year. That was unacceptable. Republicans were determined to prevent this tax hike, and more than prevent it, we made those lower rates permanent and delivered new tax relief that puts more money in Americans’ pockets.
The Working Families Tax Cuts delivers permanently lower tax rates across the board. After nearly doubling the standard deduction in 2017, the Working Families Tax Cuts made it permanent. And thanks to this bill, parents will benefit from an increase in the child tax credit to $2,200 per child, which is now linked to the cost of living so it never loses its value.
We also created a number of new tax relief provisions. The senior deduction helped more than 35 million Americans over age 65 reduce their tax burden this year. No tax on tips and overtime allowed workers to keep more of their hard-earned money – from waiters and waitresses to firefighters and factory workers. All told, Americans earning between $100,000 and $200,000 last year who took advantage of this new tax relief saw an average tax cut of $1,250.
The good news extends to small businesses, farms, and ranches too. Permanent pro-growth provisions in the tax code will help them invest more in their operations and employees – things like lower tax rates, the 199A small business deduction, and 100 percent immediate expensing. These permanent tax policies help free up cash for small businesses, encourage investment, and help them create more opportunity.
I’m also very proud that the Working Families Tax Cuts saves a lot more small businesses and family farms and ranches from the death tax by raising the exemption threshold. Family businesses, farmers, and ranchers who want to pass their operation on to the next generation can now breathe easier thanks to this bill, and they can avoid the costly estate-planning expenses that come with this unfair tax.
Republicans not only prevented a $4 trillion tax hike, we provided additional tax relief that puts more money in hardworking Americans’ pockets and offers more breathing room for family businesses, farms, and ranches. For the past year, the American people have been seeing the benefits of the Working Families Tax Cuts, and this story continues to unfold throughout our state and across the country.
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Another shift of wealth to the rich and cut health insurance etc for her middle class