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NCFC: Farmers WILL pay more taxes in reform measure
The CEO of the National Council of Farmer Cooperatives says the tax reform proposed by the administration and the House Ways and Means and Senate Finance Committees, would raise taxes for all farmers.
Chuck Connor tells Brownfield Ag News the Domestic Production Activities Deduction, section 199, is eliminated in the reform package, “And by eliminating that one deduction, no matter what else you do, farmers will face a tax INCREASE as a result of this bill. And, that’s not the stated desire that we have heard from ANY lawmaker.” Connor says the deduction is part of the 2004 Job Creation Act and applies to proceeds from ag products that are grown, produced, manufactured or extracted by farmer co-ops or marketed through co-ops. Connor says most cooperatives pass the benefit directly to their farmer members. He says nearly $2-Billion dollars a year is the estimate.
Connor says the removal of section 199 came as a surprise, “In general, we’re going through a very difficult patch right now. Prices are low. Surplus commodities are high. You know, the outlook is grim right now and no one would suggest that the solution to that is more taxes on farmers.”
Connor says farmers are in favor of tax relief to help spur economic growth but this proposal does the opposite. House Republicans are expected to release specific details of their tax bill this week.
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