House is considering tax reform bill
Monday, November 6, 2017
Posted by: John Holevoet, director of government affairs
House Republicans released the text of their tax reform bill, The Tax Cuts and Jobs Act. House leadership outlined an aggressive schedule to pass tax reform as President Trump has repeatedly noted that he wants to see tax reform concluded by the end of the year. The House Ways & Means Committee is set to mark up the Tax Cuts and Jobs Act (H.R. 1) today at noon with Senate leadership releasing their version soon.
DBMMC is carefully reviewing the tax reform proposal. We are working as part of a broader coalition with the National Council of Farmer Cooperatives (NCFC) to ensure provisions important to the farming community are properly handled.
Click here for a comprehensive section-by-section summary of the Tax Cuts and Jobs Act.
A few of the provisions include:
- Reduces number of individual incomes rates from seven to four but nearly doubles standard deductions and repeals many itemized deductions.
- Estate and gift tax exemption doubled and estate tax fully repealed after six years and stepped-up basis is maintained.
- Changes pass-through tax rates by reducing the top rate to 25% but places limits on the kind of income that would qualify.
- Lowers the corporate tax rate to 20%.
- Immediate expensing for new equipment.
- Small businesses may write off the interest on loans.
- Net operating losses limited to 90% of taxable income.
- State and local tax deductions limited only to state and local property tax deductions up to $10,000.
- Eliminates Section 199, the Domestic Production Activities Deduction for cooperatives and another provision that would apply a maximum 25% rate on patronage dividends from co-ops.
As several of the proposals will have an impact on farms and agricultural businesses, the agricultural community needs to scrutinize how these provisions will affect us. If you feel strongly about one or more of the provisions, it is important to reach out to your elected official to express your thoughts on the proposal.
Attached here are the agricultural contacts for Congressional Offices with DBMMC membership. Please note the government server may not recognize your email. If your email is bounced back, please contact DBMMC staff and they can make sure your message is forwarded to the correct person. If you do not know your legislators' use this tool to find out who they are.
Please feel to reach out and contact us if you have any questions.