The 2017 Tax Cuts and Jobs Act is set to expire this year if Congress doesn’t take action. Dustin Sherer, director of government affairs for the American Farm Bureau Federation, says letting the TCJA expire would have significant impacts to agriculture and a majority of Americans.
“If nothing is done, there will be a tax increase at the end of the year that will hit farmers and ranchers in the pocketbooks, overall, that will be taxed tens of billions of dollars more than they otherwise would, and we need to make sure that Congress does its job and makes these tax reforms permanent.”
Sherer says the TCJA includes many provisions that are beneficial to lowering Americans’ tax bills.
“65 percent of American households across the country are going to see a tax increase in the trillions of dollars. Farmers and ranchers, the overall tax rates that their business income is taxed at went down. The estate tax exemption was doubled from five and a half million to $11 million indexed to inflation. A lot of important provisions to agriculture in these expiring provisions.”
There are still several steps to renewing the legislation, the first of which is the reconciliation process between the Senate and House.
“February 20, the Senate passed its version of a budget resolution which only dealt with some energy provisions, some border policy, and some additional defense spending. And then the following week, the House passed a budget resolution that’s aimed towards having one big, beautiful bill, as Speaker Johnson, and President Trump have referred to it, and so that happened on February 25.”