Farm Bureau Continues to Look at Camp's Tax Reform Proposal
Washington While the American Farm Bureau continues to analyze House Ways and Means Committee Chairman Dave Camp's (R-Mich.) recently released tax reform proposal, some of the plan's provisions are raising concerns. In particular, the elimination or reduction of some key accounting methods and depreciation and expensing deductions used by farmers and ranchers could possibly offset the benefit of a lower income tax rate.
"It is not uncommon for farmers and ranchers to have years with little or no taxable income," noted Pat Wolff, American Farm Bureau Federation tax specialist. "So, a lower individual tax rate may not adequately compensate farmers for lost tax provisions and over time could result in a higher effective tax rate. That's something we'll be considering as we comb through this proposal."
Still, Farm Bureau considers Camp's effort to be a strong and much-needed start to what will surely be an extensive tax reform discussion.