December 02, 2017
MONTGOMERY, Ala., Dec. 2 — The Alabama Farmers Federation praised the U.S. Senate’s approval of tax reform legislation early Saturday morning and encouraged Congress to work toward final passage of a plan to help America’s farmers and working families.
The Senate passed its version of the plan just before 2 a.m. Eastern Time by a vote of 51-49. The measure will now go to a conference committee, where differences will be worked out with the House of Representatives version, which passed in November.
Federation President Jimmy Parnell sent letters supporting a tax cut to Alabama Republican Sens. Richard Shelby and Luther Strange. Both voted in favor of the plan.
“We are seeing tremendous economic growth in our country, and it is essential that meaningful tax reform be enacted immediately to continue on this positive course,” said Parnell. “We firmly believe this bill will not only grow the economy, but will also put farmers in a much better position relative to the current tax code”.
The bill would double the estate tax exemption and preserve cash accounting rules for farmers. It also would expand and increase small business expensing limits under Section 179. Farmers and ranchers would be allowed to continue deductions for customary business expenses including feed, seed and other inputs.
“While we support a full repeal of the estate tax, the Senate bill does immediately double the exemption level, which will keep the majority of our farmer families from having to pay this punitive tax,” Parnell said. “We will continue to push for a full repeal as the bill moves to a House-Senate conference committee.
“We look forward to working with the Senate and House to get a final product to President Trump before the year’s end,” Parnell added. “The time is now to enact meaningful tax reform that helps our nation’s farmers, small businesses and individuals.”