Thune: Working Families Tax Cuts Delivers Major Tax Relief for South Dakota Small Businesses

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WASHINGTON — U.S. Senate Majority Leader John Thune (R-S.D.) today delivered the following remarks on the Senate floor: Thune’s remarks below (as delivered): “Mr. President, last week was Small Business Week. “And I was glad to be able to host a business roundtable last Monday in Aberdeen, South Dakota, and hear directly from small business owners in my state. “I was also able to visit the Business and Health Innovation Center on the campus of Northern State University, which houses the Northern Innovation and Startup Center that provides support for aspiring entrepreneurs in northeastern South Dakota. “Mr. President, Small Business Week is an important celebration, but the impact that small businesses have is felt literally every day of the year. “Nearly half of Americans in the private sector work for a small business. “Small businesses are responsible for a majority of the new jobs in this country. “And a lot of Americans’ first jobs were at a small business – mine included. “Mr. President, there’s nothing small about the impact that small businesses have in our country. “And Republicans know that any path to economic strength runs through small businesses. “And that’s why they were a key focus of the tax relief we delivered in the Working Families Tax Cuts last year. “This landmark bill locked in the lower small business tax rates that Republicans enacted in 2017, giving them certainty to plan for the future. “It also made the 199A small business deduction permanent. “Mr. President, I’ve heard positive feedback on 199A across industries in my state. “In South Dakota, an agricultural cooperative estimates the impact of this one policy at over $100 million since 2017 – and that money has been able to be passed on to the farmers that are members of that co-op. “And I’m sure that those farmers – like so many small businesses across the country – are relieved that 199A is here to stay. “Mr. President, 199A is just one of the policies in the Working Families Tax Cuts that helps free up money so small businesses can invest in their operations and in their employees. “Another is 100 percent bonus depreciation, which is also now a permanent feature of the tax code. “Bonus depreciation allows business owners to deduct the full cost of a new piece of equipment the year they start using it, rather than spreading that deduction out piecemeal over several years. “Say you’re a farmer and you need to replace your combine. “Or a manufacturer who needs to upgrade your machinery. “Or a plumber who needs a new truck. “Those are all big expenses – especially for a small – maybe even, in some cases, one-person – operation. “So bonus depreciation helps small businesses take on that big expense by allowing them to deduct the entire thing in that one year. “And the impact can be significant. “In fact, a car dealership in my state was able to build an addition and hire 10 more people because of bonus depreciation. “Mr. President, a lot of our small businesses and farms and ranches in South Dakota are family-run operations. “Many of them have been in the family for generations, and the plan is to keep them – keep them – in the family for generations to come. “Unfortunately, the death tax has too often threatened these plans. “When one generation passes the business on to the next, the death tax can take a big bite out of it. “It can be devastating, forcing families to sell all or part of their family business, farm, or ranch just to satisfy a big tax bill. “Not to mention the costly estate planning expenses that many families incur to keep their business from being ruined by a death tax bill. “Mr. President, I’m very proud that the Working Families Tax Cuts protects a lot more family businesses from this unfair tax. “In this bill, Republicans permanently raised the exemption threshold on the death tax, and a lot of small business owners, farmers, and ranchers breathed a sigh of relief that they don’t have to worry about losing their livelihood when they lose a loved one. “Mr. President, last week was Small Business Week; it was also Travel and Tourism Week. “In South Dakota, tourism is one of our leading industries. “Last year, 15 million people visited the Mount Rushmore State. “They came to see that iconic monument. “To see the South Dakota Badlands. “And the bison herds at Custer State Park. “Some came for conferences in Sioux Falls. “Others for our legendary pheasant hunting. “All told, Mr. President, last year tourism brought $5 billion to South Dakota’s economy. “And I have to think that a lot of that money was spent at our state’s small businesses. “At our restaurants, coffee shops, and breweries. “With tour operators. “Hunting guides and outfitters. “And many more. “Mr. President, like the other small businesses in our state, businesses in the tourism industry are benefiting from tax relief in the Working Families Tax Cuts. “Lower small business tax rates. “Investment incentives. “The 199A small business deduction. “Mr. President, some of the most positive feedback I’ve heard from small business owners about the Working Families Tax Cuts is how much this bill helps their employees. “The no tax on tips and no tax on overtime provisions in this bill are especially – especially – game-changing for folks in hospitality and tourism. “That includes waiters and bartenders, of course. “It also includes people who work as tour guides, entertainers, and drivers. “Mr. President, many Americans look forward to the summer for a few days away with their families. “And … for those who work in hospitality and tourism, summer means more customers and more money. “And the Working Families Tax Cuts ensures that more of the money they earn stays in their pockets. “Mr. President, Democrats may try to claim the Working Families Tax Cuts was about billionaires, but the American people know the truth. “Farmers, ranchers, and small business owners know it’s helping them free up money to meet their expenses and invest in their operations and in their employees. “And hardworking Americans can see that the Working Families Tax Cuts lets them keep more of their hard-earned money. “We call it the Working Families Tax Cuts for a reason, Mr. President. “And I’m proud to report that working families are benefiting.”