HURON – If Congress is unable to pass a tax reform package this year, Sen. Mike Rounds, R-S.D., said he hopes it can at least pass a bill to reduce the tax rate of every American by a minimum of 2 percent.
It would mean that $800 would stay in the pockets of those who need it most, he said in a conference call with reporters on Thursday.
“That’s the number I’m looking at, to do that at least,” Rounds said. “My goal is to get something along that line.”
On Wednesday, President Donald Trump and congressional Republicans announced a tax reform plan that would cut taxes for corporations, simplify the tax code and nearly double the standard deduction used by most taxpayers.
“Our goal is to add more job opportunities to the American economy and to bring in more revenue so we can actually start to pay our bills,” Rounds said.
A sluggish economy that can instead grow by more than 3 percent would balance the budget and, in the long term, start paying off the nation’s debt, he said.
Sen. John Thune, R-S.D., delivered a floor speech on Thursday on the tax reform framework.
While the Obama era meant higher taxes, more regulations and a stagnant economy, Congress now has an opportunity to implement pro-growth tax reform policies and provide relief to working families, he said.
“Working Americans are living paycheck to paycheck,” Thune said. “We must deliver on tax reform policies that will lead to more jobs, fairer taxes and bigger paychecks.”
Rep. Kristi Noem, R-S.D., is a member of the House Ways and Means Committee, which has primary jurisdiction over tax reform. She attended a meeting with Trump earlier in the week to discuss the proposed framework.

“In the 30 years since we last reformed the tax code, very little has been done to modernize that tax code – only loopholes that have nearly tripled its size and made it infinitely more complex,” she said in a statement.
“The framework lays out a simpler path forward with the hopes of achieving more job creation, bigger paychecks and a stronger economy,” Noem said.
Asked about criticism that the plan would cut taxes for wealthy Americans, Rounds said it is intended to be a broad tax reduction for all taxpayers.
The standard deduction for joint filers would nearly double to $24,000 for most Americans, he said.
The vast majority of South Dakotans would fare well under the plan, he said.
But the state not only has wage earners, it has business owners, Rounds said. When taxes they must pay are reduced, they will have more money to reinvest and hire more employees, he said.
In the coming months, tax experts will offer their recommendations and the plan will be tweaked, Rounds said. But when all is said and done, something must be done about the tax rate or the economy won’t grow, he said.
Companies are shifting jobs overseas and making a profit because tax conditions in the United States don’t compare favorably with other countries, Rounds said.
Unless there’s new growth in the economy, payments on the debt and entitlements like Medicare, Medicaid and Social Security will eat up the entire budget by 2026, he said.
“It really is a serious issue; we have to address it now,” he said.
The tax reform plan will need 50 votes for passage in the Senate.
Rounds said he thinks five or six Democrats will join Republicans in voting for the bill, but only after enough support is there for passage.
“I think they really do want to challenge us to see if we stick together and get it done,” he said.