More Control over Your Paycheck
By Rep. Kristi Noem
I’ve told this story often, but it bears repeating because it’s the foundation of what I’ve fought for in tax reform. A while back, I met a young mom in the grocery store. She had a handful of coupons and a cart of groceries. We got to talking about how much costs have gone up. Healthcare, electricity, you name it – all were on the rise. And so, she asked me: “When is it going to get better?” To that mom, I want to say this: 2018 will be better because of tax reform.
In South Dakota, the average household income is $54,000. For that family of four, we doubled their standard deduction, meaning the first $24,000 a married couple earns is now tax free. We’re also doubling the Child Tax Credit to $2,000 per child, and we’re pushing the family’s tax rate down to 12 percent. If you crunch the numbers, that the average family of four in South Dakota making $54,000 will go from an $830 tax liability under current law to a $780 tax refund under tax reform. That’s a change of $1,600.
And it could be even higher. Families will continue to have access to the Child Care Credit, which I fought alongside Ivanka Trump and others to preserve. The home mortgage interest deduction, the Adoption Tax Credit, charitable contributions, and popular retirement savings options are also retained. Deductions for 529 education savings accounts and medical expenses are enhanced, as is the refundability of the Child Tax Credit.
These credits and deductions can have a powerful impact on those we care about, because they put money back into our families and communities, rather than into the greedy hands of Washington.
At the same time, this tax reform package is designed to create a healthier economy – one in which wages can rise. Already, we’ve seen a number of businesses respond by announcing they’re moving jobs back to America and giving their employees a much-deserved Christmas bonus.
In South Dakota, our number one industry is agriculture, and I’m incredibly proud this tax reform package reflects so many of the priorities shared with me by farmers and ranchers across the state. I was the only farmer sitting at the negotiating table when the final deal was made, but I made sure producers would have access to enhanced expensing tools, immediate deductibility, and like-kind exchanges. Additionally, we created a 20 percent small business deduction that will benefit many farms and ranches as well as agricultural cooperatives. While the fight to repeal the un-American Death Tax will continue, I’m glad this bill gives farmers, ranchers, and small businesses some relief by doubling the exemption levels and maintaining the stepped-up basis.
I believe 2017 will be marked as the year in which you were put back in control. Federal regulations have been toppled by Congress and President Trump. The judicial system has been flooded with those who believe in liberty and the freedoms enshrined within our Constitution. Tax reform’s passage was the capstone and the surest sign that things are going to get better for hardworking Americans.
During his remarks on the White House lawn, President Trump explained we were “warriors together” in tax reform. It’s very true. We fought side by side throughout this process, and we did that for a singular reason: We both believe you deserve more control over your paycheck. You’ve worked hard for that money, and it’s time the folks in Washington respect that.