White House GOP Looking At Tax Cuts Heading Into 2020

The White House and Congressional Republicans are in early talks on a new tax cut and growth package ahead of the 2020 election.  According to the Washington Post, the discussions are “preliminary,” and probably more about next year’s election than actual legislating.  However, top Ways and Means Republican Kevin Brady told the paper a key aim is to “make permanent some of the key provisions,” in the 2017 tax bill Brady spearheaded, including provisions for agriculture.  Breaks that sunset in 2025 include a 20% deduction on pass-through income covering more than 95% of farms, and enhanced equipment expensing.

 

American Farm Bureau tax adviser Pat Wolff said Democrats would rather use the tax breaks for environmental and other efforts.

 

“Some of the provisions of the Tax Cut Jobs Act, like the estate tax exemption, the $11 million estate tax exemption, are proposed as a ‘pay-for’ for other initiatives.”

 

But White House aides are now said to be pushing for a sharper contrast between Democratic presidential candidates who want to roll back 2017 tax cuts, and President Trump’s tax cut message.  Wolff said a roll-back of those 2017 cuts would hit Ag hard.

 

“So, if you take away the lower rates and changes in capital gains taxes, you’re looking at a significant tax increase for farmers and ranchers.”

 

White House officials have hinted other proposals could be in the mix, including reducing the payroll tax and indexing capital gains to inflation, both of which Wolff says could help producers.

 

 

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