Thursday, January 26, 2023

Tax Expert Offers Pro’s and Con’s of New Tax Legislation

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Farm groups offered a mixed reaction to House passage of a tax reform package. The American Farm Bureau Federation called the action a “step closer to a tax code that works for all farmers and ranchers.”

The National Cattlemen’s Beef Association called the passage a “step in the right direction,” noting specifically the language within the package that would immediately double the death-tax exemption and put the tax on the path to extinction in five years. However, NCBA also expressed concern that the reform package would significantly limit the ability of some businesses from deducting their interest expenses.

The National Council of Farmer Cooperates called passage of the bill “unfortunate,” as the organization says the reform package will raise taxes on farmers and co-ops across the country by eliminating the Section 199 deduction.

And, The National Farmers Union said it was “alarmed” by the passage because the legislation would jeopardize farm bill funding, while increasing the federal debt and harming farmers and ranchers.

This week Russell Nemetz talked with Amy Iverson, a certified public accountant with WipFli CPA's and Consultants about the pro's and con's of the tax reform packages in Congress.

 

Attention now turns to the Senate Finance Committee, which continues working on its tax overhaul bill. The Senate will eventually be the chamber to watch on tax reform, because Republicans hold a slim majority. Some Republican senators have already panned the tax-reform bill because of the impacts on the annual budget deficit and long-term federal debt.

Source: Russell Nemetz-Northern Ag Network

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