Senator Thune Highlights Economic Relief for South Dakota Families in New Tax Legislation
- Steve Jurrens
- Feb 17
- 2 min read
Northeast Radio SD News - Watertown, SD - Senate Majority Leader John Thune (R-SD) visited Watertown this week to highlight the real-world impacts of the landmark Working Families Tax Cuts Act, emphasizing that the legislation represents “10 years of legislating” aimed at long-term economic stability for South Dakotans.
During an interview with Steve Jurrens and Dorene Foster at Northeast Radio SD, Thune detailed how recent federal policy shifts are designed to provide “breathing room” for families currently navigating tax filing season.
Relief for Working Families
The Senator noted that the average American family is seeing approximately $3,700 more in their pockets this year due to the permanent extension of 2017 tax rates and the new provisions passed last summer. Key permanent changes include:
· Child Tax Credit Expansion: Now worth $2,200 per child and indexed for inflation.
· Standard Deduction: The 2017 doubling of the deduction has been made permanent, benefiting over 400,000 South Dakotans.
· No Tax on Tips and Overtime: A major win for service industry workers and first responders, allowing them to keep 100% of federal taxes usually applied to extra hours and gratuities.
The Rise of “Trump Accounts”
One of the most innovative policies discussed was the Newborn Trump Account (530A account). Starting July 4, 2026, parents can fully contribute to these tax-deferred IRAs for their children. For babies born between 2025 and 2028, the federal government provides an initial $1,000 seed deposit.
“It’s a way for working families to put money aside tax-free for their kids,” Thune explained, noting that major corporations like Dell and IBM are already matching employee contributions to these accounts.
Protecting the South Dakota Way of Life
Addressing concerns about the “Death Tax,” Thune reiterated his commitment to protecting family farms. The current exclusion—$15 million for individuals and $30 million for couples—was made permanent to prevent families from having to liquidate operations to pay a 40% tax upon a transition between generations.
Pro-Growth Economic Strategy
Responding to critics of the deficit impact of tax cuts, Thune cited the historical “rule of thumb” that a 1% increase in GDP yields $3 trillion in additional tax revenue over a decade. By incentivizing capital investment through bonus depreciation and R&D expensing, Thune argues the economy will grow fast enough to offset the cuts.
“We want to keep these people here in South Dakota—keep them on the farm, the ranch, and in small businesses,” Thune concluded. “It all starts with a growing, expanding economy.”
