A senior member of the Senate tax-writing committee expects estate tax repeal, a key for agriculture, to survive in a GOP-crafted tax reform proposal.
GOP tax reform details are being announced this week and Former Senate Finance Chair and senior member Chuck Grassley says estate tax repeal is still ‘in play,’ despite media reports that the White House and lawmakers were considering ditching it.
Stepped-up basis allows for figuring property value, not from the time of purchase, but from the time of an owner’s death, helping limit tax liability.
Other Ag priorities for tax reform include Section 179 business expensing and cutting the corporate tax rate for many farm and small businesses that pay through the individual tax code.
The C corp rate is expected at 35-percent, pass-through, at 25, and the individual tax rate at 20-percent.
Most producers are considered either ‘pass-through’ businesses or pay taxes as individuals, which a Farm Bureau official says could mean some farmers could face an increase, if thrust into the ‘pass-through’ category.
Meantime Grassley also wants the tax reform bill to include his earlier, stand-alone biodiesel tax credit reform bill.
Grassley argues the US is already subsidizing domestic biodiesel. The new policy in Grassley’s stand-alone bill would last at least three-years.
From the National Association of Farm Broadcasting News Service.