A while back, I met a young mom in the grocery store. She had a handful of coupons and a cart full 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?”

I was proud to be a member of the final tax reform negotiating team, and I’m confident that because of tax reform, it’s going to get better.

In South Dakota, the average household income is $54,000. For that family of four, we’d see their total tax bill go from an $830+ tax liability under current law to a $780 tax refund under tax reform – a $1,600 difference. Here’s how: Tax reform doubled their standard deduction, meaning the first $24,000 the couple earns is now tax free. We also doubled the Child Tax Credit to $2,000 per child and reduced their tax rate.

Beyond that, I fought to preserve the Child Care Credit. 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.

Additionally, our number one industry in South Dakota 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, the bill creates a 20 percent small business deduction that will benefit many farms and ranches. 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.

Bottom line: I trust you know how to spend, invest or save your money better than Washington bureaucrats do. 

For more information, please visit noem.house.gov/taxreform

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