Republicans reveled in their success Wednesday as tax reform finally moved through Congress, marking the end of a long-fought battle in Washington, D.C.
After an arduous process and nonstop partisan debate on whether the GOP tax cuts would benefit the wealthy more than the average American income-earner, Republicans ultimately triumphed.
U.S. Rep. Kristi Noem, a South Dakota Republican who’s running for governor, celebrated what she called “a historic day for hard-working Americans.” Noem was heavily involved in the reform effort.
“By lowering tax rates, doubling the standard deduction, doubling the child tax credit, that family in South Dakota making $54,000 could go from about an $800 tax liability to an over $700 tax refund,” Noem said in a call with reporters on Wednesday. “That’s a $1,600 difference, and $1,600 that can go back into their families, into the community, rather than into the greedy hands of Washington.”
Estimates vary on how much average Americans will benefit from the tax overhaul, but the Joint Committee on Taxation expects favorable outcomes for moderate wage-earners.
In 2019, according to the Joint Committee on Taxation, a 16.3 percent tax cut is estimated for those earning $20,000 to $30,000. Other reports, like Monday’s from the Tax Policy Center, expect the tax cuts to provide greater benefits to wealthy Americans.
U.S. Sen. John Thune, also a South Dakota Republican who served on the conference committee that negotiated the final bill, spoke of the “pro-growth” reform bill after it passed through the Senate.
“Next year, families across America will see their tax bills drop and their take-home pay increase, and businesses will find it easier to grow their operations, hire new workers and raise wages,” Thune said in a press release. “The legislation brings America’s tax system into the 21st century - benefiting workers and our economy.”
U.S. Sen. Mike Rounds was also encouraged after the reform effort narrowly squeaked through the Senate.
Rounds said he looks forward to the bill being signed into law, possibly before Christmas.
“Our tax bill will create a healthy, more vibrant economy that we can pass onto our kids and grandkids,” Rounds said in a press release. “This legislation puts American businesses back on a level playing field with the rest of the world so we can once again be globally competitive.”
The South Dakota Democratic Party said it will “continue to fight for an economy - including a tax system - that works for everyone, not just the privileged few.” S.D. Democratic Party Executive Director Sam Parkinson suggested the plan puts millionaires, billionaires and corporations before American families.