Farm Bureau Gets Behind House Republican Effort to Make Several Tax Cuts Permanent

Support for a House Republican-backed bill, which would make several changes included in last year's tax reform package permanent is being voiced by the American Farm Bureau Federation.The Protecting Family and Small Business Tax Cuts Act of 2018 (HR 6760) would make several aspects of the 2017 Tax Cuts and Jobs Act permanent. While the 2017 legislation cut taxes for all businesses, only certain tax cuts for incorporated businesses operated as C corporations were permanent.Most farms and ranches file their taxes as sole-proprietors, partnerships or S corporations, thus could see their taxes revert to higher levels in the future if the relevant tax cuts were allowed to sunset as provided for under the 2017 package.Many of the tax cuts included in the original package, which not only reduced taxes for businesses but also included changes for personal income tax filers, were given a sunset date in part to allow the legislation to be enacted using the reconciliation process rather than through regular order.Among the changes now considered in the House, which Farm Bureau supports making permanent are:Reduced pass-through tax rates and expanded brackets;The Section 199A new 20% business income deduction;Unlimited bonus depreciation (expensing);The doubled estate tax exemption ($11 million person/$22 million couple), andThe increased alternative minimum tax threshold for individuals.