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Latest News


Section 199A of the tax reform bill needs to be fixed





By Natalia Castro at NetRight Daily and Americans for Limited Government

Within the last month, more than 160 million Americans opened their bank accounts to find that the recently passed Republican tax plan provided them with a more substantial paycheck and more economic mobility.

But one area of the tax code appears to have had unintentional consequence of picking winners and losers in agriculture.

Despite the overwhelming benefits for families and small businesses a provision within the tax plan could have far-reaching negative consequences on agricultural products sold to private buyers. This provision, seemingly entered as a last-minute mistake, must be rectified during the March funding debate in order to provide equal competition to the market.

Section 199A of the tax reform law provides additional tax incentives to farmers who sell agricultural products to co-ops rather than independent private buyers. When selling to co-ops, farmers can now deduct up to 20 percent of their total sales made; however, when selling to privately held or investor-owned companies, the farms can now only deduct 20 percent of income.

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