Proposal Could Reduce Taxes for Farmers and Streamline the Tax Code
Washington, D.C. - K·Coe Isom, the nation's leading agricultural accounting firm, today commented on the tax reform proposal released by U.S. Speaker of the House, Paul Ryan. Speaker Ryan proposes to reduce individual and corporate tax rates in the U.S. and take steps toward simplifying the tax code.
"This appears to be a great start to an important effort," said K·Coe Isom CEO Jeff Wald. "Farmers in the United States support the goals of lowering tax rates and simplifying the tax code, provided those efforts don't take away the flexibility farmers rely upon for their businesses and for financial planning."
Some of the specific items in the House Republican tax proposal that could affect farm businesses and families include:
- Provide all businesses with the benefit of full and immediate write-offs of their investments in both tangible and intangible assets.
- Repealing all estate taxes.
- Repealing the Alternative Minimum Tax (AMT).
- Streamlining the current seven-tiered tax rate structure of 10 to 39.6 percent for individuals to a lower three tax brackets, 12, 25 and 33 percent.
- Lowering the corporate tax rate to 20 percent.
- Reducing the double taxation of corporate income through the reduction of tax on dividends and capital gains of individual shareholders.
- A new 25 percent business tax rate for small businesses that are organized as sole proprietorships or pass-through entities.
"While this proposal doesn't have all of the details worked out, this appears to be a good-faith start at an effort that could benefit farmers," added Wald. "We are particularly pleased that this effort did not propose removing farmers' ability to use cash accounting, as had been proposed in previous tax reform bills."
"There are some items in this proposal that would be clearly beneficial for farmers, such as immediate expensing of equipment purchases," said Wald. "Other portions of the proposal, such as the new business tax for small businesses will require detailed study to ensure that they will not inadvertently harm U.S. farmers."
K·Coe Isom is a national agriculture accounting and consulting firm that represents farmers and ranchers throughout the U.S. In 2013, K·Coe Isom helped launch Farmers for Tax Fairness, a national coalition of farmers who worked to educate Congress on the importance of cash accounting to U.S. farmers.
"Agriculture is the backbone of America creating millions of jobs, supporting local economies, and providing food security for the world," said Wald. "As Congress considers comprehensive tax reform, it must make sure that proposals promote U.S. agriculture."
About K·Coe Isom
K·Coe Isom leads, nationally, as consultants and CPAs in the food and agriculture industry-services constituting more than two-thirds of the firm's business. The firm is embedded throughout the US food-supply chain-from policy to plate-working with producers, input suppliers, processors, packagers, distributors, biofuel manufacturers, equipment dealerships, landowners, lenders, and many agencies and policy organizations that support the industry. The firm also has regional strengths in community banking, construction and real estate development, education, manufacturing, and technology. K·Coe Isom serves domestic and international clientele from 18 coast-to-coast offices. Visit kcoe.com.
7.01.2016
