“The one two certain issues in life are demise and taxes.” -Benjamin Franklin
“The one two certain issues in life are demise and taxes.” -Benjamin Franklin
“The one distinction between a taxidermist and a tax collector is that the taxidermist solely takes your pores and skin.” -Mark Twain
“Be grateful you’re not getting all the federal government you pay for.” -Will Rogers
Ah sure, as I gaze on the calendar the 15th of April is however a mere few days within the offing. Tax time has arrived! You recognize, that point of yr when most of us assume it’s okay to lie. In any case, the politicians do it on a regular basis.
One challenge I can inform you that has been on the forefront of Farm Bureau for the 4 a long time I’ve labored for the group has been taxes. So let’s take a look at the place the group sees probably the most want for reform and repeal:
Whereas vital strides, such because the 2017 passage of the Tax Lower and Jobs Act, have been made in recent times, Farm Bureau helps quite a lot of adjustments to assist present stability and safety for America’s farms and ranches.
Property taxes ought to be completely eradicated. On the very least, Farm Bureau believes that the $11 million per particular person/$22 million per couple listed property tax exemption that was handed as a part of the Tax Cuts and Jobs Act ought to be made everlasting and that limitless stepped-up foundation ought to proceed.
The limitation on the quantity that property values will be lowered beneath Particular Use Valuation Part 2032A ought to be eliminated. Timber harvesting or the sale of a conservation easement mustn’t set off a recapture of property taxes.
The capital positive aspects tax fee ought to be lowered and belongings ought to be listed for inflation.
Capital positive aspects shouldn’t be collected at demise and there ought to be an exclusion for agricultural land that continues to be in manufacturing, for transfers of farm enterprise belongings between members of the family, for farmland preservation easements and growth rights, and for land taken by eminent area.
Passage of the Tax Cuts and Jobs Act in 2017 advantages most farm and ranch companies and has allowed them to construct their operations and stimulate the agricultural economic system. Essential provisions embrace lowered tax charges, the brand new enterprise earnings deduction, provisions to permit the matching of earnings and bills, speedy value restoration and a rise within the property tax exemption. USDA Financial Analysis Service documented the anticipated advantages of the tax reform in its June 2018 publication “Estimated Results of the Tax Cuts and Jobs Act on Farms and Farm Households.”
The Tax Cuts and Jobs Act comprises many new, everlasting provisions that assist agriculture:
Sect. 179 Small Enterprise Expensing Elevated to $1 million. Indefinite Carry Ahead of Deductions Listed for Inflation. Depreciation for Farm Tools Shortened from 7 to five Years. New Flat 21 % Company Tax Price and Repeal of the Company Different Minimal Tax (AMT).
Most of the pass-through enterprise provisions within the Tax Cuts and Jobs Act are non permanent and ought to be made everlasting. Extra the 98 % of farm and ranches function as “pass-through companies:” sole proprietorships, partnerships and Sub S companies. Failure to increase these vital provisions will lead to a tax improve for farmers and ranchers and go away them with out methods to cope with the cyclical and unpredictable nature of their companies.
Lowered Go-By Tax Charges and Expanded Brackets: If not prolonged, greater tax charges will improve taxes on nearly all of farm and ranch companies.
New 20 % Enterprise Earnings Deduction (phase-out begins when taxable earnings exceeds $315,000/joint): Permitting the enterprise earnings deduction to run out would develop the tax base of pass-through companies, erasing a lot of the good thing about tax reform laws.
Limitless Bonus Depreciation (Expensing): If not continued, farmers and ranchers will probably be unable to offset earnings with deductions for his or her enterprise bills. That is particularly crucial as a result of like-kind exchanges for tools and livestock are repealed.
Doubled Property Tax Exemption to $11 million particular person/$22 million couple: If the exemption is allowed to revert again extra farms and ranches will probably be topic to property taxes. And, so long as the exemption degree is non permanent cash should be spent on property tax planning fairly than on rising farm and ranch companies.
Elevated Different Minimal Tax Threshold for People: Rollback of the upper AMT threshold will cancel out vital deductions and credit put in place by tax reform.
Solely time will decide our success.
“Authorities’s view of the economic system could possibly be summed up in just a few brief phrases: If it strikes, tax it. If it retains shifting, regulate it. And if it stops shifting, subsidize it.” -Ronald Reagan
Ron Kern is the supervisor of the Ogle County Farm Bureau.
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