The House Ways and Means Committee has released its tax reform plan, the Tax Cuts and Jobs Act. This is the first major tax package since the 1980s and this legislation is expected to move quickly through Congress, with the President saying he wants it on his desk before Christmas. The Senate has released the framework of their bill as well, and it is similar to the House's version.
The House bill includes the following provisions important to farmers and ranchers:
- Reduced Business Tax Rates
- Immediate Expensing of Business Investments
- Continuation of Cash Accounting
- Continuation of Section 1031 Like Kind Exchanges
- Estate Tax Relief
NOW is the time to tell your legislators we need common sense tax reform to ensure these items remain in the final bill.
The federal tax code should be simple, transparent, and fair to farmers and ranchers, and it should recognize farmers’ unique financial challenges. The Tax Cuts and Jobs Act is a step in the right direction.
It's really important for farmers and ranchers to send their comments to our Congressional Delegation and let them know how important it is for them to reduce tax rates, but also to protect several very important tax provisions such as expensing of business investments, continuation of the interest deduction, like-kind exchanges, and estate tax relief!
Our industry is unique in our reliance on these provisions, so we need to make our voices heard so we are not drowned out by others. Congress needs to hear from you. Click here to find more specifics about the bill and submit your comments to our Representative and Senators.
If you have any questions, please contact nicoler@mfbf.org.
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