Rep. Kristi Noem today led the U.S. House of Representatives in passing H.R.1, the Tax Cuts and Jobs Act. Noem, who is the first South Dakota representative in history to serve on the House’s tax-reform committee, was one of nine House Republicans to negotiate the final deal. A farmer, rancher, small business owner and mother, Noem fought to double the Child Tax Credit, provide producers with better expensing tools, and lower tax rates across the board. Watch video of Noem’s closing arguments today. Read the conference report here. A summary can be found here.

“The average household income in South Dakota is $54,000, and year after year, these families are seeing their expenses go up. Their healthcare costs are skyrocketing. Their energy costs are double the national average. These are hardworking families, and they deserve a break,” said Noem. “This legislation gives them that break. By lowering tax rates and doubling both the standard deduction and the Child Tax Credit, that family of four making $54,000 will see a $1,600 difference in after-tax income. That’s $1,600 that will go back into our communities, rather than into the greedy hands of Washington.”

Noem, a mother of three, was a champion of the Child Tax Credit and fought to ensure the Child Care Credit was also preserved. South Dakota has one of the highest rates of working moms in the country, making these credits critical for many South Dakota families.

“Additionally, the Tax Cuts and Jobs Act is designed to build a healthier economy,” explained Noem. “The post-tax reform economy is one in which that family making $54,000 could get a raise. It’s an economy in which job creation can boom again.”

In addition to managing her family’s farm and ranch operation, Noem has owned and operated a hunting lodge, run an insurance business alongside her husband, and helped manage her mother’s restaurant. With those experiences in mind, Noem pushed to lift the tax burden on small business. Under the Tax Cuts and Jobs Act, small businesses would receive a first-ever 20 percent tax deduction that applies to the first $315,000 of joint income.

“I have spoken to hundreds of South Dakota farmers and ranchers throughout this process,” said Noem, who served as the only farmer-rancher on the final negotiating team. “Lowering tax rates was critical to them, but providing more robust expensing tools was also a big priority. Under this plan, producers will be able to immediately write off the full cost of new equipment as a means to manage cash flow and continue to deduct interest on loans, a provision critical to a highly leveraged industry like agriculture.”

Noem’s entry into public service came after her family was hit by the Death Tax following a farm accident that took her dad’s life. Noem went on to serve in the South Dakota State Legislature where she was appointed to the House Taxation Committee. Following her election to the U.S. House, Noem served on a series of committees, including the House Agriculture Committee where she successfully negotiated the 2014 Farm Bill as a member of that Conference Committee. In 2015, Noem earned a seat on the powerful House Ways and Means Committee, the first South Dakotan in history to do so. Noem became one of nine House Republicans to serve on the Tax Reform Conference Committee, which negotiated the tax reform deal.

Highlights of the Tax Cuts and Jobs Act

Lowers individual tax rates, setting them at 0%, 10%, 12%, 22%, 24%, 32%, 35%, and 37% so people can keep more of their hard-earned money.

Nearly doubles the standard deduction to $24,000 for married couples and $12,000 for single filers.

Provides unprecedented support for families.

  • Increases the Child Tax Credit to $2,000 per child.
  • Eliminates the “marriage penalty.”
  • Preserves the Child and Dependent Care Tax Credit (also known as the Child Care Credit) to better support working parents.
  • Preserves the Adoption Tax Credit.

Eliminates Obamacare’s individual mandate tax.

Preserves the Home Mortgage Interest Deduction for existing mortgages and maintains the home mortgage interest deduction for newly purchased homes up to $750,000, while grandfathering in existing mortgages.

Retains popular retirement savings options, such as the 401(k)s and Individual Retirement Accounts.

Permanently retains the medical expense deduction and lowers the threshold for two years at a pre-Obamacare level of 7.5% of adjusted gross income.

Improves vehicles for education by allowing families to use 529 accounts to save for elementary, secondary, and higher education.

Continues the deduction for charitable contributions.

Allows businesses to immediately write off the full cost of new equipment, which is critical for South Dakota’s agriculture community.

Offers a first-ever 20 percent tax deduction that applies to the first $315,000 of joint income earned by S corporations, partnerships, LLCs, and sole proprietorships.

Lowers the corporate tax rate to a globally competitive 21%.

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