October 06, 2017
Alabama farmers were encouraged by initial details of the much-anticipated tax reform plan President Donald J. Trump and Congressional Republicans unveiled Sept. 27.
Alabama Farmers Federation National Legislative Programs Director Mitt Walker said the organization’s farmer members welcome the proposed repeal of estate tax and other provisions.
“The plan provides a road map for fixing our outdated tax code,” he said. “There are many specifics to be worked out, and we will need to watch the process closely to make sure farmers end up in a better position than they are today.”
Notable provisions include reducing the number of individual tax brackets, lowering corporate income tax and capping small business tax rates.
Trump said the plan will make a “big difference” for farmers and called the estate tax an overdue reform.
“We are finally ending the crushing, the horrible, the unfair estate tax, or as it is often referred to, the death tax,” he said.
Walker said capping the small business tax could benefit family farmers. The plan sets the maximum rate for partnerships, sole proprietorships and S corporations at 25 percent. Those businesses are currently taxed at individual rates, ranging from 10 to 39.6 percent. More than 94 percent of farmers are currently taxed at these “pass-through” individual rates.
Many details won’t be available until after the fiscal year 2018 budget resolution passes. Read about more potentially positive, unknown or negative provisions at tinyurl.com/taxreform17.