The House Ways and Means Committee broke into 11 working groups to collect information on tax reform and they are expected to report their findings in early May. Farm Bureau provided comments to several groups with the bulk of concerns addressed to the small business group. Farm Bureau’s most pressing tax reform issues include:
- Any tax reform proposal must include individual as well as corporate tax reform considering that more than 96 percent of farms are taxed under IRS provisions affecting individual taxpayers.
- Cash accounting combined with the ability to accelerate expenses and defer income is needed in order to give farmers the flexibility to manage cash flow and their tax burden.
- Capital gains should have a maximum 15 percent rate for all taxpayers and there should be an exclusion for farmland that remains in agriculture or is sold to a family member who continues the family business.
- While broadening the base and lowering rates is important, farmers must have the tools to balance year-to-year fluctuations in income and be allowed to apply the tax benefits of unclaimed deductions and credits to previous and/or future tax years.
The tax reform committee is holding a series of informal meetings to discuss tax reform that are expected to continue through the spring.
Want to stay up-to-date on issues like this? Subscribe to Buckeye Farm eNews.