South Dakota Farm Bureau President Scott VanderWal expressed his appreciation to the South Dakota Congressional delegation for their support of the tax reform bill that was approved in the United States Senate. The Tax Cuts and Jobs Act proposal aims to reform the nation’s tax code with the goal of promoting economic growth.
“South Dakota farmers and ranchers have not seen any tax reform like this for many years. This will spur economic development and growth that is desperately needed right now for our agricultural community,” said VanderWal, SDFB President and Vice President for American Farm Bureau. “We appreciate the persistence this effort received by our South Dakota Congressional delegation.”
The new legislation would bring the first overhaul of the U.S. tax code in 31 years. It would slash the corporate tax rate, offer more modest cuts for middle income families and individuals and eliminate several popular deductions.
The bill allows farmers and ranchers to continue deducting normal and customary business expenses including but not limited to feed, seed, fertilizer, chemicals and fuel. The bill also allows for farm and ranch businesses to continue taking the deduction for state and local taxes. Because farmers and ranchers operate low-margin businesses with unpredictable income streams, it is important to continue accounting measures that are essential to help them manage their cash flow and tax liabilities
“Farmers and ranchers need a tax code that recognizes their unique financial challenges, and I believe this is a positive step for our country and our business of feeding the world,” added VanderWal.
More information about South Dakota Farm Bureau can be found at www.sdfbf.org.