A Politico article on House Republicans’ recent tax proposal quoted American Farm Bureau Federation’s Pat Wolff. In explaining the impact of the proposal to lessen the corporate tax rate, Politico noted it is “riling a host of industries that say they have little choice but to rely on borrowed money and fear that they will face big tax increases.” Agriculture is among these industries.
“Farming and ranching is almost completely financed with borrowed money,” said Wolff, senior director of congressional relations. “There aren’t stock options or venture capital or other ways for us to raise money so we rely almost entirely on loans from banks, life-insurance companies and from USDA programs, so anything that makes capital more expensive adds to the cost of business.”
“Even with the lower proposed [tax] rates, we could see a tax increase,” she said.
For more on AFBF’s tax policy, click here.