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What budget reconciliation means for taxes

The chairman of the House Ways and Means Committee says expiring tax cuts can be extended once Congress moves forward with budget reconciliation.

“It’s extremely important to give certainty to small business owners, working families and farmers as quickly as possible.”

U.S. Representative Jason Smith from Missouri says losing Section 199A tax deductions are a concern.

“There are 26 million, almost 27 million people affected with Section 199A…that’s a big impact.”

Section 199A is a deduction for ag producers and cooperatives that sets up a trade off in deductions on how grain is marketed.

But Smith says he’s optimistic lawmakers can meet an “aggressive” deadline for reconciliation.

“Our plan in the House has always been put it on the president’s desk by Memorial Day.”

A recently passed House budget resolution sets the stage for tax and spending changes later this year, but it needs Senate approval before budget reconciliation can happen.

Senator John Thune from South Dakota said in an interview this week the U.S. Senate isn’t expected to consider the House budget resolution before mid-March.