The upcoming year will be a better one because of tax reform.
In South Dakota, the average household income is $54,000. For a family of four, we doubled their standard deduction, meaning the first $24,000 a married couple earns is tax free. We’re also doubling the Child Tax Credit to $2,000 per child and pushing the family’s tax rate down to 12 percent. If you crunch the numbers, the average family of four in South Dakota making $54,000 will go from an $830 tax liability to a $780 tax refund under tax reform — 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 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 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 businesses respond by announcing they’re moving jobs back to America and giving employees a Christmas bonus.
I’m incredibly proud this tax reform package reflects so many of the priorities shared with me by farmers and ranchers. 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 benefits farms, ranches and agricultural cooperatives. While the fight to repeal the un-American Death Tax will continue, this bill gives farmers, ranchers, and small businesses relief by doubling 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.
During his remarks on the White House lawn, President Trump explained we were “warriors together” in tax reform. We fought side by side throughout this process for a singular reason: We both believe you deserve more control over your paycheck. It’s time the folks in Washington respect that.