SIOUX FALLS, S.D.- Many people have questions about the recently passed tax reform. Kristi Noem is making stops in a handful of cities across the state of South Dakota and holding lunch, and small group dialogue to answer any concerns.
The largest of these concerns from the public is, why are top earners being benefited more so over middle class families? Congressmen and Congresswomen, like Noem, want the public to know that intentions of helping the lower and middle class, were the only thing in mind.
“They go from having an 800 dollar tax liability to over a 700 dollar tax refund coming back to them. So that’s, a big deal”, Noem said about families in South Dakota.
General consensus is that in the long run, is that these tax will hurt the middle class. Noem drove home the idea that small businesses, and middle class families will see the most benefits. She also expects businesses to increase their wages. She expects this to help out the middle class as well.
Some general notes about the tax reform:
- Lower tax rates for all.
- Businesses that make under $315-thousand per year will see 20% drop in taxes as a “small business”.
- Corporate tax lowered to 21%, making South Dakota one of the lowest corporate tax rates in the U.S.
- Hopes are this brings more jobs to South Dakota and higher wages.
- Wage increases expected to increase anywhere between $4,000 – $5,000.
- Expanding and the people investing are the goals, as well as to see growth.
You can start to see changes to your paychecks starting in February of this year, 2018.
If you are wondering how this tax form is going to affect you and your paycheck, many websites offer a tax calculator to help you out. Just search for the word, “Tax Calculator”