House Ways Means Chairman Unveiling Tax Reform Proposal
Today, House Ways & Means Committee Chairman Kevin Brady (R-TX) is releasing his tax reform proposal that will be the basis for the committee mark-up to begin as early as next week. The Tax Cuts and Jobs Act will propose to lower individual and corporate tax rates, streamline the tax code, and eliminate existing incentives to outsource jobs and revenue. While the legislative text was not yet available, preliminary information released by the committee indicates that the proposal intends to protect the ability of small businesses to write off interest on loans, allow businesses to immediately write off the full cost of equipment purchases, and doubles the estate tax exemption levels and fully repeals it after six years. It is not clear from the preliminary summaries how the proposal will treat other ASA priorities such as cash accounting, stepped-up basis, and like-kind exchanges. The proposal is not expected to include an extension of the biodiesel tax credit, and that issue will require a strong push from the Senate to get into the discussion. ASA will carefully review the House proposal when the legislative text is released and continue to communicate our priorities and the impacts that tax reform will have on farm families and agricultural operations.