Senate Tax Reform Plan Would Help Middle-Income South Dakotans, Farmers and Ranchers

Senate Tax Reform Plan Would Help Middle-Income South Dakotans, Farmers and Ranchers

The Senate plan “lowers tax rates, doubles the standard deduction, and increases the child tax credit, all of which will put more money into the pockets of hardworking Americans …”

WASHINGTON — U.S. Sen. John Thune (R-S.D.), a member of the tax-writing Senate Finance Committee, today applauded the Finance Committee’s release of a comprehensive tax reform plan based on the unified framework. Several Thune-authored provisions from previously introduced tax reform bills were included in the broader Senate plan. These provisions, in addition to Thune’s work on the broader plan, will help middle-income families, small and medium-sized businesses, and family-run farms and ranches throughout South Dakota. As a member of the Finance Committee, Thune will play a critical role when the committee begins consideration of the plan on Monday, November 13.

“Middle-income Americans are tired of struggling under a weak economy. They are ready for relief. This legislation is good news for American workers and American families. The legislation the Senate Finance Committee unveiled today lowers tax rates, doubles the standard deduction, and increases the child tax credit, all of which will put more money into the pockets of hardworking Americans and give them more flexibility to care for their families. By lowering taxes on small businesses and other job creators, our bill also makes the reforms necessary to boost our economy and give Americans access to the kinds of jobs, wages, and opportunities that will set them up for a secure future. I commend Senate Finance Committee Chairman Orrin Hatch for his leadership and look forward to working with our colleagues in the House and the Trump administration to ensure a pro-growth tax reform package is signed into law.”

Since January 2017, Thune has introduced numerous individual tax reform marker bills that cover multiple portions of the tax code. Thune-authored provisions included in the Senate version of the Tax Cuts and Jobs Act are:

• Modified portions of Thune’s Investment in New Ventures and Economic Success Today (INVEST) Act of 2017 (S. 1144), legislation that would simplify accounting rules and reform key parts of the tax code to help small and medium-sized business owners more quickly recover investment costs and certain other tax deductible business expenses. By accelerating cost recovery on property, equipment, inventory, and other common business investments, these provisions would encourage new business growth and help existing businesses, including farms and ranches, expand their operations, create new jobs, and grow the economy
• Thune’s New Economy Works to Guarantee Independence and Growth (NEW GIG) Act of 2017 (S. 1549), legislation that addresses the classification of workers – independent contractors versus employees – and creates a safe harbor for those who meet a set of objective tests that would qualify them as an independent contractor. This legislation is important for traditional independent contractor arrangements, like computer consultants, freelance writers, and delivery drivers, as well as all of those individuals who participate in the on-demand economy and provide a rapidly growing range of services.

Sen. Thune doesn’t believe death should be a taxable event, which is why he introduced the Death Tax Repeal Act in January 2017 and still strongly supports this approach. The Tax Cuts and Jobs Act includes a provision that would provide additional relief (compared to current law) to more of South Dakota’s family-run businesses, farms, and ranches that are currently threatened by the death tax, which is important progress.

To learn more about Thune’s work on tax reform, please visit the tax reform section on www.thune.senate.gov.

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