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April 8, 2014

Permanent Tax Changes Necessary for Economic Prosperity

For more information on Newsline, contact: Kari Barbic, Media Specialist, American Farm Bureau Federation, karib@fb.org.

Many believe the United States tax code is complex and cumbersome, which is why tax changes have become a focal point for Congress. The American Farm Bureau Federation supports changes to the tax code that provide stable, predictable rules for businesses while fostering growth and creating jobs. However, Farm Bureau wants to ensure provisions important to agriculture are protected. Seanica Otterby has the story.
OtterbyDuring a House Ways and Means Committee hearing on tax issues today, American Farm Bureau President Bob Stallman told members long-standing tax provisions should be made permanent at the 2013 level. One of the major provisions for farmers and ranchers, Section 179 small business expensing, has allowed them to expense certain purchases of assets.
StallmanFarm Bureau supports maintaining that with a cap of $500,000 per year. In other words, you could buy up to $500,000 worth of assets and be able to expense that amount in the first year, which would certainly help you bear the brunt of getting those assets to use in your business.
OtterbyStallman says farming and ranching is a capital-intensive business, and farmers and ranchers need the ability to upgrade and replace equipment.
StallmanThe tax benefit that is achieved by being able to expense these items allows producers an economic benefit that encourages them to purchase the equipment and keep their assets up to date so they can have a more productive farming operation.
OtterbyStallman says the foundation of the nation's economic prosperity is a tax policy that encourages business investment and economic activity.
StallmanThe one thing we don't want are tax provisions, or taxation, that inhibits business activity.
OtterbySeanica Otterby, Washington.

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