FOR IMMEDIATE RELEASE
Contact:  Russ Levsen, 202-226-4449

REP. HERSETH SUPPORTS AMERICAN JOBS CREATION ACT

Provides Tax Relief for South Dakota Businesses and Families; Benefits Ethanol Industry; Reinstates State Sales Tax Deduction

June 17, 2004, Washington, DC – Rep. Stephanie Herseth today voted for the American Jobs Creation Act, which provides a range of tax incentives that will benefit South Dakota businesses and families, including the reinstatement of the state sales tax deduction for states like South Dakota that do not have a state income tax.

The bill, HR 4520, was sponsored by Rep. William Thomas (R-CA).  House Republicans voted 203-23 in favor of passage, while Democrats voted 48-104 against.

Rep. Herseth’s support of this bill is indicative of her commitment to be an independent voice on behalf of South Dakota.  Herseth said, “I did not run for Congress to be a rubber stamp for either party, and I will always judge a piece of legislation on whether or not it is good for South Dakota.  I supported the American Jobs Creation Act because I believe that hard working South Dakota families and small businesses deserve to keep more of their money.”

Currently, the residents of 43 states are allowed to deduct their state income tax from their federal taxable income, while residents of states like South Dakota that do not have a state income tax carry a higher burden of federal taxes.  The American Jobs Creation Act corrects this inequity in the tax code by allowing taxpayers to deduct either their state income tax or their state and local sales taxes in 2004 and 2005.  Herseth has advocated a permanent fix to the problem earlier this year, and noted that the two year fix is a good first step.

The Act also provides important benefits for South Dakota’s ethanol industry.  It extends by three years, to 2010, the existing federal excise tax exemption for ethanol while ensuring that highway programs supported by the federal gas tax remain fully funded.

The American Jobs Creation Act also includes provisions to:

• Reduce the corporate tax rate for domestic manufacturers from 35 percent to 32 percent
• Extend more than 20 expiring tax relief provisions
• Create tax relief for small businesses, especially small manufacturing companies

Herseth is a member of the Blue Dog Democratic Coalition, a fiscally conservative group of House Democrats from primarily rural districts. 

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