As a big proponent of the tax reform bill, Senator John Hoeven sat down to discuss how it could benefit North Dakotans. He brought in people from our communities to help explain the changes.
It was a small roundtable this afternoon at Ace Hardware in Bismarck. The location was specific to show a sucessful small business and how the 20 percent tax deduction to companies like that could help out North Dakota’s economy.
“That’s what happens when a small business is allowed to have it’s money. It will grow. And then that funnels through the entire economy. Small business is the engine of the economy. It’s not the big companies,” said Kirkwood Ace Hardware owner Jeff Hinz.
The conversation wasn’t only centered around small businesses. Senator Hoeven made a point to work on parts of the bill concerning agriculture.
He said it’s, “To make sure that it helps our farmers and ranchers at a time when they need the help. Commodity prices are low. So, it’s a tough time in agriculture.”
So, changes were made to section 179 of the bill. According to Senator Hoeven, it will increase the expensing of equipment from $500,000 to $1 million dollars. As well as decucting property taxes and interest on loans.
Hazen farmer John Weinand added, “Being able to have that assurity of going forward where we’ll have that tax deduction and know that it’s there and we can use it in a capital-intensive business like farming. That’s a pretty big incentive for people to purchase equipment and keep the economy rolling.”
In additon to agriculture and small business, they outlined the average household tax cuts being anywhere from $1,300 to $2,600.
“I think any time we can encourage economic development of any kind, that we’re going to help the economy in general and move forward,” said Weinand.
However, on the other side, Democratic Senator Heidi Heitkamp thinks this bill could hurt more than help. She says the $1.5 trillion dollar cost of this tax reform bill could lead to $20 billion dollars in cuts to agrictulture programs. That, and loopholes may widen the gap between large and small businesses.