Lawmakers Fail to Deliver on Death Tax Repeal But Keep Stepped Up Basis in Tax Reform PackageTue, 19 Dec 2017 12:03:03 CST
The Conference report out from the joint House and Senate committees that hashed out the final version of the Tax Cuts and Jobs Act will likely be signed by President Donald Trump by Christmas, as currently it looks as though the GOP has the votes to get it passed. While Republicans are touting this massive legislative undertaking as a major win for the American people, National Cattlemen's Beef Association Tax Specialist Danielle Beck says when it comes to agriculture - she gives it a B.
"For agriculture, you know, I would give it about a B," she said. "We're not in a terrible position but we're not in the best ever. I hate to say that but that's just where we are right now."
According to Beck, the new tax deal brokered by lawmakers in Washington has kept the step up in basis in its present form. This issue was critical to producers' priorities regarding tax reform. Beck says NCBA members were very vocal over the past year at their annual meetings to ensure this provision was preserved. Another issue pushed by NCBA equally hard, was a complete and full repeal of the Death Tax. Unfortunately, this is one area where Republican leaders fell short of their campaign promises. Rather than repealing it, Beck reports the new reform package only doubles the tax exemption for individuals and couples from $5 to $10 million and up roughly to $20 million, respectively, plus an index for inflation. What is worse - this doubling of the exemption will sunset after just eight years. This comes as a great disappointment for many in agriculture who fought fervently to do away with the controversial tax measure. Down the road, Beck says the challenge will be to turn these temporary gains into permanent gains for cattle producers and others.
"Unfortunately, we weren't able to get there, but we did preserve the step up in basis. So, starting in 2026, we'll revert back to the current levels," Beck said. "Everything Republicans campaigned on Death Tax repeal, was something they weren't able to deliver and that's because of the cost."
Listen to Danielle Beck of NCBA and Radio Oklahoma Ag Network Farm Director Ron Hays discuss the new tax reform package, on today's Beef Buzz.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
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