A divided Congress is ready for battle, including on the future of GOP tax reform enacted by the last Congress. Incoming Senate Finance Chair Chuck Grassley said majority House Democrats want to “undo” and “chip away” at GOP-passed tax breaks. Grassley said he’ll try to make permanent, breaks that sunset in 2025, including the new 20% deduction on pass-through business, covering more than 95% of farms, and enhanced equipment expensing, also key for producers.
But American Farm Bureau tax adviser Pat Wolff says all that’s unlikely.
“The new House controlled by the Democrats wants to take away some of the tax breaks that were passed. So, it’s a new ball game in January. It looks like making the ‘tax reform 2.0’ tax cuts, is off the table. It looks like we’ll be playing defense, trying to hold onto the tax provisions that we have.”
Wolff added there are two-issues at play, now.
“One, will Congress try to roll back the lower tax rates for corporations; And two, will they extend the tax provisions for small business.”
Wolff said at this point, any action may need to wait until after the 2020 election. Grassley added he’s ready for a fight and will meet with “stiff resistance,” any attempt to hike taxes and as he puts it, “undermine the strength of the American economy for the sake of ideology.”
If you have a story idea for the Washington Ag Network, call (509) 547-1618, or e-mail email@example.com