Noem Votes to Give Huge Tax Cuts to Wealthy and Corporations at the Expense of South Dakota Workers and Communities
Rep. Kristi Noem joined the majority of her fellow House Republicans today in voting for a tax bill which would increase taxes on middle class families and provide massive giveaways to billionaires and wealthy corporations. South Dakota taxpayers deserve a balanced tax reform plan that strengthens our workforce and small businesses and creates economic opportunities for all South Dakotans.
Despite Rep. Noem’s claims, the Republican tax plan is a bad deal for millions of working families across the country who will be will be worse off under this bill than if Congress had done nothing. On top of permanently raising taxes on millions of Americans, the Republican tax bill pays for a permanent tax break for the wealthy by cutting programs and deductions that the working families of South Dakota rely on every day.
It’s long past time for Kristi Noem and her Republican colleagues in Congress to get serious about actual tax reform and join Democrats in building an economy that works for everyone, not just those at the top.
Here’s a look at the impact of the Republican tax plan in South Dakota:
- The House Republican tax bill is a giant giveaway to wealthy corporations and rich South Dakotans, at the expense of everyone else.
- The richest 1% of South Dakota taxpayers will receive 57% of the tax cuts under House Republican tax bill.
- The richest 1% of South Dakotans will receive an average tax cut of $101,570, more than 339 times what the average middle-class family would get.
- 16% of middle-income taxpayers in South Dakota would even see their taxes go up, by $410 on average.
- The House Republican tax bill hurts teachers in South Dakota, by repealing a tax credit for teachers who buy their own school supplies.
- College students in South Dakota will also be hurt, because the House tax scam makes student loans more expensive. 49,413 graduates in South Dakota take advantage of the student loan interest deduction House Republicans want to eliminate, saving $1,086 on average.
- South Dakota seniors will find it harder to save for retirement or cover their medical bills. In fact, the House GOP tax bill would take away all South Dakotans ability to deduct their medical expenses. 21,626 South Dakota residents deducted their medical expenses in 2014, saving $12,786 on average.
- The House Republican tax bill could also force $25 billion in automatic cuts to Medicare next year. More than 156,127 South Dakotans who rely on Medicare could be at risk.
- Workers in South Dakota would be hurt by the corporate tax giveaway. The Republican tax plan incentivizes large companies to move jobs overseas by giving them a 0% rate on most foreign profits. While big corporations take advantage of this loophole, small businesses on Main Street will find it harder to compete.
- The Republican tax scam threatens to take the state and local tax deduction (SALT) away from tens of millions of households nationwide. The deduction ensures that Americans are not taxed twice on the same income. In South Dakota 50,000 residents would no longer be able to use the state and local deduction to save hard-earned money on their federal tax returns under the House tax scam.
- Distressed and rural communities could lose an important program that funds hundreds of hospitals, daycare facilities, alternative energy projects, and small businesses. The House GOP plan ends the New Market Tax Credits program, which has spurred over $154 million in community investments in South Dakota and created over 1183 full-time jobs since 2003.
- Clean and renewable energy businesses looking to invest and build in South Dakota would be at a disadvantage under the House tax plan. The bill would phase out popular tax credits for wind and solar energy that renewable and natural energy industries in South Dakota rely on, making it more difficult for South Dakota businesses to qualify for the construction tax credits.
- South Dakotans recovering from a natural disaster, such as a flood, tornado, or fire would be at a disadvantage, because the House Republican tax bill eliminates a critical infrastructure financing measure designed to help states rebuild after sudden events.