Hoeven Holds Tax Reform Discussion at American Crystal Sugar to Outline Relief for North Dakota Families, Small Businesses, Farmers and Ranchers

Hoeven Amendment Ensured Fair Treatment of Cooperatives in Tax Bill

FARGO, N.D. – Senator John Hoeven today was joined by Tom Astrup, American Crystal Sugar President and CEO; Jake Joraanstad, a tech entrepreneur and Myriad Mobile’s co-founder and CEO; David Mueller, a farmer from Hillsboro; and Vikki Schneeberger, a local teacher, to outline how the tax relief plan benefits North Dakota workers, businesses and families. The new law lowers rates across-the-board for hard-working American families and provides relief for North Dakota small businesses, farmers and ranchers. The senator successfully worked to include an amendment in the bill to ensure fair treatment of cooperatives.

          “Our tax reform legislation provides broad relief for individuals and families in North Dakota, enabling them to keep more of their paychecks,” said Hoeven. “At the same time, we lower the tax burden on our small businesses, farmers and ranchers. We included important provisions for producers, like raising the estate tax exemption and expanding and making permanent the Section 179 deduction. We also worked very hard to ensure cooperatives and their members are treated fairly so that tax reform works for our state’s agriculture industry.”

Highlights of the Tax Cuts and Jobs Act

Middle-class Americans will see a tax cut of:

  • More than $1,300 for a single parent with one child earning $41,000.
  • More than $2,000 for a median income family of four earning $73,000.
  • More than $2,600 for a married small business owner earning $100,000.

Cuts Tax Rates Across the Board for Hardworking Individuals and Families

  • Increases the standard deduction, which means that Americans will not be taxed on the first $12,000 of income for individuals, $24,000 for married couples and $18,000 for a single parent with dependents.
  • 9 out of 10 taxpayers will likely use the expanded standard deduction.
  • Maintains the state and local tax deduction up to $10,000 for individuals and families.
  • Doubles the Child Tax Credit to $2,000 per child
  • Preserves the Child and Dependent Care Tax Credit
  • Encourages businesses to provide paid family and medical leave by providing a tax credit
  • Preserves the Adoption Tax Credit
  • Retains Retirement Savings Options
  • Continues tax deductions, including for:
    • Student Loan Interest and Tuition Waivers
    • Medical Expenses
    • Charitable Contributions
    • Home Mortgage Interest

Benefits to Small Businesses, Farmers and Ranchers

  • Includes Hoeven’s amendment to ensure the fair treatment of cooperatives and their members.
  • For the first five years, allows full expensing or writing off the cost of new investments, which is phased down over an additional four year period.
  • Expands the Section 179 expensing of equipment on a permanent basis.
  • Doubles the estate tax exemption, while maintaining the step-up in basis for capital gains.
  • Maintains interest deductibility and the property tax deduction for small businesses, farmers and ranchers.
  • Creates a tax deduction of 20% for qualified pass-through income, which reduces the tax burden for small businesses set up as partnerships or pass-through entities.
  • Reduces the tax rate for C corps from 35% to 21%, making the U.S. tax system more competitive globally and bringing more capital and investment back to the U.S.
  • Maintains the IC-DISC program, which enables small and medium businesses, including manufacturers, to reduce taxes on portions of their export income.
  • Includes Hoeven’s amendment to allow implement and auto dealers to fully expense interest on inventory.       

Tax relief, combined with regulatory relief, will empower economic growth leading to greater government revenues. While some have claimed the legislation will lead to cuts under pay-go rules, these rules have never been enforced and Congress voted to waive the rule last week. Over time the tax relief bill will help grow the economy and will generate more revenue not less.