Committee Approves Noem-Sponsored Tax Reform 2.0

Press Release

Rep. Kristi Noem today helped advance Tax Reform 2.0 through the House Ways and Means Committee, setting the stage for the full House to consider the bill in the weeks ahead. The Noem-backed legislation is a three-pronged approach to make permanent the tax relief families and small businesses received through the Tax Cuts and Jobs Act. Furthermore, it includes provisions to simplify retirement savings and promote innovation for startup operations.

"Since President Trump signed our historic tax cuts last year, we've seen our economy roar back, producing more job opportunities and larger paychecks for South Dakotans," said Noem. "Tax Reform 2.0 would make sure the benefits families are enjoying today are benefits they'll be able to enjoy long into the future. In addition to that, we've added new options for folks at all stages of life -- from starting a business to starting a family to starting retirement. I look forward to continuing this debate in the full House and am incredibly optimistic about what this plan can do for the hardworking people of South Dakota."

Last year, Noem served as one of the only farmers or ranchers on the final tax reform negotiating team, making her a critical advocate for South Dakota's number one industry. The legislation gave producers access to enhanced expensing tools, immediate deductibility, and like-kind exchanges, all of which are being made permanent in Tax Reform 2.0.

Highlights of Tax Reform 2.0

Makes the following provisions from 2017's historic tax cut permanent:
Lower tax rate
Doubling of the Child Tax Credit from $1,000/child to $2,000/child
Doubling of exemption levels for the Death Tax
First-ever Paid Family Leave Tax Credit
Creates a new Universal Savings Account to offer a fully flexible savings tool for families
Expands 529 Education Savings Accounts, so families can use the money to pay for apprenticeship fees, homeschooling, or student debt
Offers New Baby Savings by allowing families to access their own retirement accounts penalty-free for expenses when welcoming a new child through birth or adoption
Allows small businesses to join together to create a 401(k) plan more affordably
Allows new businesses to write off more of their initial start-up costs

Source