MITCHELL, S.D.-South Dakota's senior U.S. Sen. John Thune sees a major windfall for average American families under the Senate Republican tax reform plan.
As the bill works its way through the Senate, Thune said remaining concerns about the tax relief bill are being addressed and amendments are being considered. And within the plan that slashes most individual tax brackets and the corporate tax, but also is expected to raise the deficit by $1 trillion according to a Thursday Congressional estimate, Thune acknowledged the child tax credit isn't getting a ton of attention.
Under the Senate GOP plan, the maximum child tax credit would double from $1,000 annually per child to $2,000, which Thune said is one of the main benefits within the bill for South Dakota families.
"And we did - by doubling the child tax credit in the bill - I think provide a tremendous amount of relief to families trying to raise kids in this country," Thune said in a Thursday, Nov. 30, interview.
But the bill wouldn't make the credit entirely refundable for some families.
Republican U.S. Sens. Marco Rubio of Florida and Mike Lee of Utah pitched an amendment that would make the whole $2,000 per child credit refundable to families who don't owe taxes at the end of the year. And while Thune appreciates what Rubio and Lee are trying to achieve, he said the portion of that plan that lowers the corporate tax rate to 22 percent instead of 20 percent would have implications throughout the rest of the bill.
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On the other end of the spectrum, Thune said some people have expressed concerns about increasing the maximum child tax credit to $2,000, citing the potential fiscal impact. But, using a South Dakota family of four with a combined income of $73,000 as an example, Thune said the plan would lead to a 60 percent tax reduction compared to today. And the child tax credit is a major contributor.
"But a lot of that has to do with if they've got two kids," Thune said. "I mean, that's $4,000 right there."
South Dakota's other U.S. senator, Mike Rounds, a Republican, also sees advantages within the bill for average Americans.
"I haven't seen any recent numbers based upon the current projections, but clearly this is really going to help the average American consumer," Rounds said in a media call Thursday.
