Will Congress Make Farm Tax Breaks Permanent? Grassley Not Sure

Incoming Senate Finance Chair Chuck Grassley sees mixed prospects for making a key farm tax break permanent in the new Congress.  Getting it done will take House-Senate cooperation, and few are predicting that, and that includes cooperation on making middle-class tax breaks like one for farm income, permanent.  Republicans propose to fix that key shortcoming of their sweeping tax reform bill, criticized by Democrats who voted against the GOP tax bill last year.

Grassley claimed the majority wants to raise taxes; not make tax cuts permanent.

“I don’t think it would be made permanent until the whole individual income tax thing is made permanent.”

Grassley was asked if he thinks Democrats would oppose making permanent the lowered tax rate on farm income claimed on producers’ individual returns.

“I don’t think the Democrats would surly go after something that benefits small business.  And in fact, since they are always attacking corporations why would they attack small business?”

Asked if he’ll meet with expected incoming House Ways and Means Committee Chairman Democrat Richard Neal, Grassley said, “We’ll have to.”  The House GOP took a symbolic vote in September, making middle-class and small business tax breaks, including a 20% farm income deduction, permanent after the current scheduled expiration in 2025.

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