Ask Congress to reduce farm taxes within minutes | Michigan Farm News

Ask Congress to reduce farm taxes within minutes

Category: Politics

by Michigan Farm Bureau

Cutting Money_MFN_2017

Farm Bureau needs your help to urge Michigan’s Congressional members to support tax reform that reduces taxes for farmers and recognizes the industry’s unique financial challenges.

Visit Michigan Farm Bureau’s Legislative Action Center (no login required) to send a letter asking to replace the current federal income tax with a simple, transparent and fair tax system that encourages success, savings, investment and entrepreneurship. The site is easy to use, and with prewritten comments provided, it takes just a few minutes to complete.

We believe tax reform should embrace these principles:

  • Comprehensive: Tax reform should help all farm businesses, including sole proprietors, partnerships and sub-S corporations.
  • Effective Tax Rate: Tax reform should reduce income tax rates enough to account for any deductions or credits lost.
  • Cost Recovery: Tax reform should allow businesses to deduct expenses when incurred, continue 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 transfers at death.

Several pieces of legislation are floating around the U.S. House and Senate containing provisions we support, and a comprehensive proposal—yet to be crafted into legislation—was recently released by the Trump Administration, the House Committee on Ways and Means, and the Senate Committee on Finance. Read our related story for comments on the framework from MFB President Carl Bednarski and MFB National Legislative Counsel, John Kran.