President Donald Trump promised the American people a big, beautiful tax cut for Christmas, and with final passage of the tax reform bill, several ag industry members believe it will be.
During his remarks Wednesday at the Bill Passage Event, President Trump made sure to give out a shout out to farmers who would benefit from the bill:
“One thing, very important, for the farmers — the great farmers, and the great small-business owners, that were forced to sell their businesses at bargain, basement numbers — we have provided, for the most part, estate tax is wiped out. So they can keep their farms in the family, and that to me is a very big factor — very big.”
U.S. Secretary of Agriculture Sonny Perdue echoed the President’s words.
“This is a once-in-a-generation reform of the federal tax code and it comes just in time to be an eagerly awaited Christmas present for taxpayers. Having traveled through our nation’s heartland for most of this year, I know that the hard-working, tax-paying people of American agriculture need relief. Most family farms are run as small businesses, and they should be able to keep more of what they earn to reinvest in their operations and take care of their families.,” Perdue said. “Simplifying the tax code and easing the burden on citizens will free them up to make choices for themselves, create jobs, and boost the overall American economy. I thank President Trump for his leadership, and commend Congress for being responsive to the people.”
American Farm Bureau Federation President Zippy Duvall said the tax reform bill will benefit both farmers and ranchers.
“The tax reform package passed by Congress this week will result in lower taxes for the vast majority of farmers and ranchers. This tax overhaul includes many changes to the tax code, most notably lower individual tax rates, that will benefit farmers and ranchers. Ninety-four percent of farmers and ranchers pay taxes as individuals, and those rates are coming down. The bill also maintains all of the important deductions and credits that farmers rely on. So, thanks to a lot of hard work by Congress and the administration, farmers will have both lower rates and all the tools they’ve always had to manage their businesses,” Duvall said. “Starting next year, farmers and ranchers will also be able to take a 20 percent deduction off their business income. That’s new, and it will reduce the taxes farmers owe. The bill also doubles the estate tax exemption to $11 million per person, which will provide relief to the vast majority of farmers and ranchers. We look forward to President Trump signing this bill. Most of the provisions in this tax bill are temporary, lasting for only seven years, so Farm Bureau will now focus our work on making those important tax deductions, lower rates and the estate tax exemption permanent.”
The National Council of Farmer Cooperatives was pleased farmer co-ops was included in the tax reform bill.
“The tax reform legislation passed by Congress today recognizes the key role that farmer co-ops and their members play in spurring economic growth across rural America. At a time of continued low commodity prices, the legislation will deliver much needed tax relief to producers; it will help ensure that co-ops continue to invest in their businesses in ways that create jobs and bolsters local communities.
“I would also like to recognize the leadership of two senators who made sure that this legislation would work for agriculture—Senator John Thune of South Dakota and Senator John Hoeven of North Dakota. They crafted provisions in the bill that ensured that the elimination of the Section 199 deduction would not result in a tax increase for co-ops or their farmer-members. They both showed themselves to be true champions of the family farmer throughout this process.
“With the tax reform package now through Congress, we look forward to President Trump signing the legislation into law at the earliest opportunity.”