Congressional Tax Reform Efforts Begin


House Republicans released their tax plan entitled the Tax Cuts and Jobs Act on Thursday.

The House Ways and Means Committee plans to start and complete the markup of the bill this week.

The plan would double the current estate tax exemption to around $11 million per person and permanently repeal the tax in 2024. The bill also eliminates the Alternative Minimum Tax.

Cash accounting remains unchanged in the proposal, but Section 1031 like-kind exchanges will only apply to land/building (“real property”), and not to equipment and livestock.

Immediate expensing and Section 179 provisions have been increased substantially, but they only extend through 2022.

The bill lowers the corporate tax rate from 35 percent to 20 percent and consolidates seven individual tax brackets into four.

The Senate is expected to release their tax reform plan this week. Leadership in both chambers are working together to deliver a bill to President Trump’s desk before the holidays.

Florida Farm Bureau will be monitoring developments to ensure farmers and ranchers are treated fairly during the upcoming tax reform discussions.