Congress is starting to get serious about tax reform. Both the president and leaders in Congress say they want to develop a tax reform plan this fall and now is the time for your legislators to get involved.
We need you to tell Congress to reform the tax code so that it is simpler, more transparent, revenue neutral and fair to farmers and ranchers.
Farm Bureau believes tax reform should embrace the following principles:
- Be Comprehensive: Tax reform should help all farm and ranch businesses, including sole propreitors, partnerships and sub-S corporations.
- Effective Tax Rate: Tax reform should reduce combined income tax rates enough to account for any deductions or credits lost.
- Cost Recovery: Tax reform should allow businesses to deduct expenses when incurred, including business interest expense, cash accounting and keep Section 1031 "like-kind exchanges."
- Estate Taxes: Tax reform should repeal estate taxes and continue stepped-up basis, which sets the value of land and buildings at what the property is worth when inherited.
- Capital Gains Taxes: Tax reform should lower taxes on capital investments. Capital gains taxes should not be levied on transders at death
We need you to contact legislators and tell them why tax reform is import to your farm or ranch. And while your legislators are back in the district have conversations with them about tax reform at meetings, town halls, fairs and local events.