Agricultural News
Farmer Cooperatives Council CEO Says House Tax Proposal Will Raise Taxes on American Farmers
Thu, 02 Nov 2017 12:14:20 CDT
The following statement was issued by Chuck Conner, president & CEO of the National Council of Farmer Cooperatives, in reference to the House Tax Reform Package.
"By eliminating the Domestic Production Activities Deduction (DPAD), also known as Section 199, the 'Tax Cuts and Jobst Act of 2017,' the tax reform proposal released today by House Ways & Means Chairman Kevin Brady, would raise taxes on millions of farmers and depress economic activity throughout rural America. The value of the deduction for agriculture in a number of states is substantial: $136 million annually in California; $131 million in Minnesota; $80 million in South Dakota; $67 million in Iowa; and $60 million in Nebraska.
"Initial calculations using assumptions based on the Unified Framework on tax reform show that the tax burden for an individual farmer could increase by thousands of dollars each year under Section 199 repeal. In the coming days NCFC will continue to analyze the impact of farmers now that more details of the plan have been provided.
"Farmers have been told that tax reform will give them more money in their pockets to invest back in rural communities. The House tax reform package takes money away from farmers at a time when they are suffering from extremely low commodity prices. Rural America strongly supports a pro-growth tax policy, but the proposal to eliminate Section 199 will have the exact opposite effect."
Source - The National Council of Farmer Cooperatives
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