Tax Day Truth: The GOP Tax Law Overwhelmingly Favors the Wealthy and Large Corporations

SIOUX FALLS, S.D. – Today is Tax Day, the deadline for filing 2017 federal tax returns. In response, the South Dakota Democratic Party released the following statement from South Dakota Democratic Party Executive Director Sam Parkinson:

“On this year’s Tax Day, the differences between Democrats and Republicans on taxes couldn’t be clearer. While Democrats are working for a fairer tax system that works for everyone, the Republican tax law voted for by Kristi Noem, John Thune, and Mike Rounds gives massive windfalls to Wall Street, big corporations, and the wealthiest individuals. The South Dakota’s working families are hungry for real leadership in Washington and in Pierre that will stand up them. Unlike Republicans, who continue to fight to rig our economy more and more in favor of the rich, Democrats will never stop fighting for tax fairness and greater economic opportunities for all Americans, not just those at the top.”

Here’s a look at the of impact the Republican tax plan in South Dakota:

UNDER THE GOP TAX PLAN, THE TOP 1 PERCENT OF SOUTH DAKOTA TAXPAYERS WILL RECEIVE 39 PERCENT OF THE TAX CUTS WITHIN THE NEXT YEAR

By 2019, The Richest 1% Of South Dakota Taxpayers Will Receive 39% Of The Tax Cuts Under The Republican Tax Bill. [Institute on Taxation and Economic Policy, 12/16/17]

  • TPC Analysis: Nationwide, Nearly 83% Of The Tax Law’s Benefits Would Go To The Top One Percent Of Income Earners By The End Of The Decade. “By 2027, more than half of all Americans — 53 percent — would pay more in taxes under the tax bill agreed to by House and Senate Republicans, a new analysis by the Tax Policy Center finds. That year, 82.8 percent of the bill’s benefit would go to the top 1 percent, up from 62.1 under the Senate bill.” [Vox, 12/18/17]

THE GOP TAX PLAN IS PROJECTED TO RAISE TAXES ON LOW- AND MIDDLE-INCOME SOUTH DAKOTA RESIDENTS BY 2027

The GOP-Trump Tax Bill Would Raise Taxes On Low-And Middle-Income South Dakota Residents By 2027. [Institute on Taxation and Economic Policy, 12/16/17]

  • South Dakota Taxpayers In The Middle Quintile Of Income Earners ($45,980 To $71,970) Would See Their Taxes Increase By $110 On Average Under The GOP-Trump Tax Bill By 2027. [Institute on Taxation and Economic Policy, 12/16/17]
  • South Dakota Taxpayers In The Second Lowest Quintile Of Income Earners ($28,530 To $45,980) Would See Their Taxes Increase By $120 On Average Under The GOP-Trump Bill By 2027. [Institute on Taxation and Economic Policy, 12/16/17]
  • South Dakota Taxpayers In The Poorest Quintile Of Income Earners (Less Than $28,530) Would See Their Taxes Increase By $110 On Average Under The GOP-Trump Bill By 2027. [Institute on Taxation and Economic Policy, 12/16/17]

UNDER THE GOP TAX PLAN, 50,000 SOUTH DAKOTA RESIDENTS COULD BE LIMITED IN THEIR ABILITY TO UTILIZE THE STATE AND LOCAL TAX DEDUCTION

The Republican Tax Bill Would Limit Deductions For State, Local And Property Taxes To $10,000.” “You can deduct just $10,000 in state, local and property taxes: One of the most controversial parts of the GOP tax plan is the push to greatly scale back how much state and local taxes Americans can deduct on their federal income taxes. Under current law, the state and local deduction (SALT) is unlimited. In the final GOP plan, people can deduct up to $10,000 (married couples are also limited to just $10,000). The House initially restricted the $10,000 deduction to just property taxes, but the final bill allows any state and local taxes to be deducted, whether for property, income or sales taxes.” [Wonkblog, Washington Post, 12/15/17]

Under The GOP Tax Plan, 50,000 South Dakota Residents Could Be Limited In Their Ability To Use The State And Local Tax Deduction.[Microsimulation Tax Model, Institute on Taxation and Economic Policy, November 2017; Joint Economic Committee Democrats, 11/9/17]

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