It’s that time of year again: Tax Day. I don’t know anyone who looks forward to April 15th. Whether you’re getting a refund or you owe money to the IRS, I think most South Dakotans would rather they were keeping more of their money and sending less to Uncle Sam.
Republicans agree, which is why we worked so hard to pass the Tax Cuts and Jobs Act (TCJA) in 2017. As a result of these tax cuts, most Americans had a smaller tax bill. And while most Americans paid less in taxes, revenue was actually greater than expected, because our economy grew, businesses created jobs, and poverty decreased.
These are significant gains, but they’re at risk next year if TCJA is allowed to expire. If these tax cuts aren’t extended, it would mean a $4 trillion tax hike on American families and small businesses, including farms and ranches. Republicans won’t let that happen. We’re working hard to make these tax cuts permanent and protect hardworking families from a bigger tax bill next year.
Without extending the tax cuts, a typical family of four would see a $1,700 tax hike next year. The child tax credit would go from $2,000 to $1,000 per child. The standard deduction, which is used by most tax filers, would drop from about $30,000 for a married couple to about $16,000. So it’s critical that these tax policies be extended to ensure South Dakota families don’t face smaller paychecks and bigger tax bills next year.
Extending the tax cuts is also critical for small businesses that would otherwise face a $600 billion tax hike. Most small businesses benefit from a 20 percent small business deduction that was included in TCJA. This deduction helped business owners invest in their operations and create jobs, and extending this tax policy will ensure they can continue to be an engine for growth.
Making TCJA permanent will also be good for our economy. In the years after the law first passed, the economy grew faster than expected. We saw a 50-year low in unemployment. Poverty fell to a record low. And there was a narrowing of the income disparity in our country. And by extending this tax policy we can bring in more revenue the right way: by growing the economy.
Of course, we can’t deny that our country has a deficit problem, a problem driven chiefly by out-of-control spending. Unfortunately, we saw an incredible growth in government spending under the Biden administration. Federal spending in 2024 was 54 percent higher than it was in 2019. And as part of our agenda, Republicans are going to take a good, hard look at how taxpayer dollars are being spent and work to return the nation to a more sustainable spending and fiscal trajectory.
The Tax Cuts and Jobs Act was a major success in President Trump’s first term. It delivered on its promise of lower taxes, greater growth, and a stronger America. We have an opportunity to make those gains permanent and to set our country on a course for a healthy economy for years to come. We plan to seize that opportunity and deliver permanent tax relief for the American people.
