Rural Republicans Say Tax Reform Will Benefit Farmers

Even though the legislation has been signed into law by President Trump, the war of words continues over Tax Reform.  Many Democrats in Washington D.C. feel the new tax law benefits mostly the weathly, while farm state Republicans say farmers and the working class will benefit.

“Since their peaks in 2012, corn prices have declined by 60% and soybean prices have declined by 47%.  Farm income has nearly been cut in half since 2013.”

Expanded Section 179 equipment expensing and 5-years of 100% bonus depreciation for new equipment were also included in the tax reform.

“In his address to the Farm Bureau, the President called this the sleeper in the bill," said Arkansas U.S. Senator John Boozman.  "He’s right, people don’t realize.  There hasn’t been enough talk about how beneficial this provision will be for our family run agricultural operations.”

The new law also preserves the interest deduction, cash accounting and ‘like-kind’ exchanges for property, and doubles the estate tax exemption, while keeping so-called ‘stepped-up’ basis, that softens asset value growth and tax bills, when farms are passed on to the next generation.

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