News

Farm groups want to preserve Section 199 for ag

Nearly 200 farm groups and agribusinesses are urging congress to preserve Section 199 in the House’s proposed tax reform legislation.

Ag groups sent a letter to House Speaker Paul Ryan and House Minority Leader Nancy Pelosi stating that Section 199, the Domestic Production Activities Deduction, is critical to rural communities. The letter emphasizes that now is not the time to raise the tax burden on farmers and ranchers, especially as most of agriculture is facing a fourth consecutive year of tighter margins.

The group says the Section 199 deduction allows millions of dollars to be reinvested into rural communities and provides incentive for domestic production and job creation.

They say farmers would not benefit from reduced corporate and individual tax rates because they are not taxed like traditional corporations.

The letter also says the proposed bill would create a rate cut for the first $75,000 of certain tax payers, but it wouldn’t compensate for the “loss of the value and flexibility afforded by the Section 199 deduction.”

Farm groups are asking for tax reform that will lower rates on businesses but not raise taxes on farmers.

The House is expected to vote on the proposed legislation Thursday after the House Rules Committee meets Wednesday.

Add Comment

Your email address will not be published.


 

Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!