The new Congress has been full speed ahead since taking office, and that includes action on expiring tax cuts.
Ag groups have been sounding the alarm for some time now. A report by the National Association of Manufacturers shows the ag industry could lose 50,000 jobs if the 2017 tax cuts are not extended. House Speaker Mike Johnson says he understands what farmers are up against.
“This report shows that if we let the Trump tax cuts expire, we’re at risk of losing as many as 6,000,000 total jobs and $540 billion in employee compensation. We cannot fail to extend The trump tax cuts.”
The issue was at the center of a House Ways and Means Committee hearing this week. One farm CPA told lawmakers that farmers need clarity now.
“Taxpayers and their advisors are desperately seeking certainty and predictability so they can plan for the future. Without clarity, businesses and farmers are likely to delay or forego investment, which could stall economic growth and depress job creation. Congress cannot risk waiting until later this year to address these important tax provisions when it is simply too late for taxpayers to react,” said Michelle Gallagher.
Another big issue for Gallagher as a CPA is section 199A of those tax cuts, which centers around business deductions and areas like depreciation and is set to sunset later this year. It is a move that Gallagher says would hurt many small farms.
“The 199A deduction has been critical for businesses organized as sole proprietors, partnerships, LLCs, and S corporations, which represent nearly 99% of my business clients, and the vast majority of businesses in Michigan and nationwide. They also employ most of the country’s workers. 199A helped many small business clients stay competitive with large corporations in terms of wages and hiring. When inflation was skyrocketing, and during post COVID economic rebound, many of my clients increased their investments in equipment to make use of the 199A deduction as well as the last full years of bonus depreciation.”
Gallagher warns taxes would go up sharply for smaller operations if the Trump tax cuts are not extended.
Thu, 4/4/24 – 10 PM ET | 9 PM CT | 8 PM MT | 7 PM PT
