New details are filtering out on the GOP’s evolving tax plan. Some reports say equipment expensing and how producers file their taxes could see changes.
Washington Post sources say the White House and GOP leaders want to cut the rate paid by thousands of businesses that pay taxes through the individual income tax code to 25-percent from nearly 40-percent.
American Farm Bureau tax adviser Pat Wolff has urged that any plan to cut the corporate tax rate include farmers and ranchers.
Republicans, meantime, may be planning to allow “full expensing” of capital expenses immediately, instead of over several years. But The Post reports its GOP sources say the provision would sunset in five years, due to its cost.
At National Corn Growers, Public Policy Senior chief Sam Willett says it’s not just equipment expensing, but a host of tax issues producers are following.
Producers also continue their decades’ old battle to repeal the estate tax, though the White House and GOP may reportedly want to drop that idea to pick up some votes from Democrats opposed to repeal.
A bigger question remains, how to pay for tax reform, which could add more than a trillion dollars to the budget deficit over the next decade.
Republicans argue tax cuts will generate investment and new tax revenue, but conservatives want offsetting savings by ending popular tax breaks–state and local sales tax exemptions, among them.
From the National Association of Farm Broadcasting News Service.