Six months after the President signed the tax cuts and reforms into law, the U.S. Department of Agriculture (USDA) Economic Research Service (ERS) has released a report, titled “Estimated Effects of the Tax Cuts and Jobs Act on Farms and Farm Households.”
The report examines in detail how the historic tax cuts and reforms will alleviate the tax burden on American farms to help them grow and prosper. According to the report, average tax rates are expected to decline across all farm sizes and commodity specializations and fewer farm estates will be subject to the Death Tax.
“Most family farms are run as small businesses, and they should be able to keep more of what they earn to reinvest in their operations and take care of their families,” Perdue said. “Simplifying the tax code and easing the burden on farmers will free them up to make choices for themselves, create jobs, and boost the overall American economy. This report just shows what we knew all along: the tax cuts and reforms will benefit farmers.”
The TCJA significantly reformed the Federal income tax system, including individual and business income tax rates, business expenses, taxable income deductions, and the alternative minimum tax. The TCJA also doubled the Federal estate tax exclusion.
The USDA ERS report estimates the impact of current Federal income tax provisions on farm households by using 2016 tax-year data.