Hoeven: Senate and House Move to Conference on Tax Relief Legislation
On Senate Floor, Senator Outlines Important Provisions in Legislation to Lower Rates for Individuals, Families and Small Businesses, Empower Economic Growth
WASHINGTON – Senator John Hoeven again spoke on the Senate floor to outline important provisions in tax relief legislation to lower tax rates across-the-board for working Americans and to provide the nation’s small businesses, farmers and ranchers with relief. The Senate voted to move to a conference committee with the House of Representatives.
“We’re working to get the best possible tax relief package for North Dakotans and our small businesses, farmers and ranchers,” said Hoeven. “Tax relief really is all about hardworking taxpayers across this country, not just in terms of making sure they keep more of their hard-earned dollars after taxes, but making sure that their wages and income go up. As we work on this tax package, we want to make sure that across all income groups we see real tax relief. But the other aspect is that it’s pro-growth. It’s about stimulating investment across this country by entrepreneurs, innovators, small companies and with companies bringing money from overseas back home to America to create jobs here. That’s what we’ll continue to focus on as we move to conference committee with the House.”
Hoeven highlighted important provisions in the Senate plan, including:
- Increasing the tax deduction to 23% for qualified pass-through income, which reduces the tax burden for small businesses set up as a partnerships or pass-through entities.
- Maintaining the state and local property tax deduction up to $10,000 for individuals and families.
- Maintaining the IC-DISC program, which enables small and medium businesses, including manufacturers, to reduce taxes on portions of their export income.
- Greater flexibility for implement and auto dealers to expense interest on inventory. The legislation includes a Hoeven amendment that exempts businesses with floor plan financing from the interest expense limitation, subject to further rules.
Additionally, the Senate Tax Relief Package:
Reduces the Tax Burden on Hardworking American Taxpayers
- The Senate tax reform bill cuts tax rates across the board.
- Provides a net tax cut of about $2,200 for a median income family of four.
- 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.
- Doubles the Child Tax Credit to $2,000 per child.
- Continues tax deductions, including for:
- Student Loan Interest and Tuition Waivers.
- Medical Expenses
- Charitable Contributions.
- Home Mortgage Interest
- Up to $10,000 in property taxes paid to state and local governments
Benefits to Small Businesses, Farmers and Ranchers
- 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 as well as the property tax deduction for small businesses, farmers and ranchers.
Tax relief, combined with regulatory relief, will empower the economy to grow and increase government revenues. Claims that the legislation will increase the deficit do not account for or underestimate revenue from a growing economy. According to the Tax Foundation, the Senate tax bill will increase the size of the economy by 3.7 percent, increase wages by 2.9 percent and create nearly 1 million new jobs.
Hoeven has been working to ensure tax reform works for North Dakota families and businesses. In November, the senator held roundtables in Bismarck and Fargo to gather input from North Dakotans. Hoeven has repeatedly spoken on the Senate floor to outline tax reform priorities. Additionally, earlier this fall, the senator held a series of roundtable discussions in Minot, Grand Forks and Bismarck with the North Dakota small businesses and farmers and ranchers to gather input.
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