Congress needs to focus on tax reform

Farmers and ranchers need Congress to focus on tax reform in addition to the farm bill. 

Many vital provisions in the 2017 Tax Cuts and Jobs Act are due to end at the close of next year.   “Congress must not lose sight of protecting those provisions. Family farms and businesses are already feeling the impacts of inflation, increased supply costs and much, much more,” Renae Willberg, Falls County Farm Bureau president, said.  

The Tax Cuts and Jobs Act passed in 2017 contains many temporary provisions that relieve some of the burdens faced by farmers and ranchers. Several of these provisions are set to expire at the end of next year, including a key estate tax exemption. The estate tax provision is what enables farmers to transfer the operation to the next generation.  

“Our Congressional lawmakers must address tax provisions that are going to expire at the end of 2025,” Willberg said. “The current tax provisions enable farmers to remain in business and protect our farms, so that we can afford to pass them on to the next generation.” 

Currently, Americans can claim an estate tax exemption of up to $11 million per person or $22 million per couple (indexed for inflation). Those levels will expire in 2025 and exemptions will return to $5.5 million per person and $11 million per couple. 

Submitted by Renae Willberg