Agriculture is looking for tax certainty and fewer regulations from a new administration.
Hillary Clinton will release her economic plan in Michigan on Thursday, and Donald Trump announced his in a speech before the Detroit Economic Club Monday. Trump’s plan includes a 15 percent corporate tax rate—down from 35 percent, a temporary ban on new federal regulations and an end to the Estate Tax.
Agriculture is looking for tax certainty from whoever wins the White House. American Farm Bureau Federation tax adviser Pat Wolff says recent years have been anything but certain on taxes.
“For years farmers and other business owners have had to deal with the tax codes that changed every year, was complicated and often wasn’t known until December.”
The uncertainty gave farmers what Wolff called a ridiculous week or two at the end of 2014 to decide whether to use Section 179 single-year expensing to buy equipment.
Agriculture won permanent Section 179 single-year expensing for equipment and other capital expenses last December, but only extensions for bonus depreciation and some energy tax breaks.
“There are a few tax breaks that are expiring at the end of this year. Some of the big ones for the farmers and ranchers are the tax incentives for renewable energy.”
Farm Bureau also wants exclusions for capital gains, an emphasis on individual versus corporate tax relief and an end to the estate tax.
Ending the estate tax has been a perennial Farm Bureau goal for years. Farm Bureau bills it the “Death Tax,” levied at a family’s most vulnerable moment, forcing some to break up the farm to pay the tax.