The battle lines are drawn on President Trump’s tax reform proposals. The top Senate Democrat has just ‘tarred and feathered’ key provisions that would benefit farmers and other small businesses.
Democrats stopped the GOP effort to repeal Obamacare, now they’re taking aim at the Republican push for tax reform, including estate tax repeal and changes to ‘pass-through’ tax rates that could benefit farmers.
Top Senate Democrat Chuck Schumer.
And letting farmers and other small businesses get a lower tax rate, as so-called “pass-through” entities? Schumer says…
American Farm Bureau officials, encouraged by the President’s tax plan, argue most farmers and ranchers are not cash rich, even if they appear rich in land, equipment, and structures needed to farm.
AFB tax adviser Pat Wolff says there’s also a reason to allow a lower ‘pass-through’ rate for producers. She says the majority of farmers pay taxes as sole proprietors under the individual tax code, not the business code. That means they pay taxes as either ‘pass-through’ businesses or individuals.
The proposed pass-through rate was expected at 25-percent, though Farm Bureau is concerned some producers could see an increase if they’re currently paying a 20-percent individual rate.
From the National Association of Farm Broadcasting News Service.