Tax Reform Will "Ease Tax Burden on Farmers"
President Trump announced yesterday his vision for tax reform. Tax revisions included lower taxes on corporate profits, incentives for business investment, fewer and lower individual income tax brackets and the end of estate taxes, with the goal of boosting economic growth and benefiting middle-income families.
Trump vows to "protect farmers, ranchers and small businesses," and a significant part of the reform will be a repeal to the so-called death tax. “We are not going to allow the death tax to steal away the American dream from these great families," said Trump.
An update on President Trump's announcement was provided on AgDay TV:
In a statement from the staff of Speaker of the House, Paul Ryan (R-Wisc.), he said that, in addition to simplifying the tax code and lowering rates for individuals and families, "the unified tax framework also repeals the death tax and the generation-skipping transfer tax, which will ease the tax burden on farmers," a spokesperson said. "The framework also eliminates the alternative minimum tax and allows farmers to immediately write off the cost of new investments in depreciable assets for at least five years. This policy represents an unprecedented level of expensing with respect to the duration and scope of eligible assets, which is certain to benefit all of those in agriculture."
There's certainly more to come with regard to tax reform as experts dig deeper into the details. Even though taxes could be lowered, some say the total spend for those in agriculture could go up if there are adjustments in what is considered farm income and what is considered compensation. Experts Jim Wiesemeyer, ProFarmer Washington D.C. policy analyst and Paul Neiffer, a CPA with Clifton Larson Allen, discussed tax reform with Mike Adams on AgriTalk earlier this week.