Regressive taxation would increase burden on family farmers
The U.S. House of Representatives leadership released its blueprint for sweeping tax reform last week, including significant cuts to individual and corporate tax rates and eventual repeal of the estate tax. The plan is estimated to cost $1.51 trillion over the next decade.
While NFU supports efforts to simplify the tax code, we adamantly oppose the overarching elements of this plan because they shift the nation’s tax burden from the top earners in our country to the backs of American family farmers, ranchers and the middle class.
This plan offers significant tax cuts for corporations and the wealthy. It repeals the estate tax, a significant revenue generator that affects only the wealthiest in our nation. And it does not provide adequate offsets for these cuts, translating to a $1.51 trillion increase to our federal deficit.
While we await details on specific provisions for farming operations, NFU urges a shift towards simplified, progressive tax policy that recognizes the unique needs of family farming and ranching operations.
This includes maintaining the estate tax and provisions like cash accounting, stepped-up basis, interest expensing, and others that are important to sustaining a family farm in the 21st Century.
Roger Johnson is president of the National Farmers Union