Tax reform proposal addresses tax rates, key deductions for ag
The extensive tax reform proposal released Feb. 26 by House Ways and Means Committee Chairman Dave Camp, R-Mich., is “a strong and much-needed start to what will surely be an extensive tax reform discussion,” according to American Farm Bureau Federation President Bob Stallman.
Camp’s proposal would lower both the top corporate income tax rate and the top individual tax rate to 25 percent, down from the current 35 percent for corporations and 39.6 percent for individuals.
While lower income tax rates sound good, the elimination or reduction of some key accounting methods and depreciation and expensing deductions could possibly offset the benefit of a lower income tax rate for farmers and ranchers. Read more on FBNews’ website, http://fbnews.fb.org/.