Farmers warn tax cuts expiration could devastate small businesses
August 16, 2024 | Ways and Means: House Committee, Standing Committees - House & Senate, Congressional Hearings Compilation
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During a recent government meeting, key stakeholders discussed the implications of tax policies on families, farmers, and small businesses, emphasizing the need for continued support and potential expansions of tax benefits.
One parent highlighted the financial strain of healthcare costs and unexpected home repairs, urging lawmakers to maintain the current tax threshold of $2,000. They argued that reducing this amount would adversely affect families' abilities to afford essential services, particularly for young children requiring early intervention therapies.
Family farmers also voiced concerns regarding the phasing out of immediate 100% expensing for machinery and equipment, a provision introduced in the 2017 Trump tax cuts. A farmer shared their experience of needing to replace a costly combine, stressing that the ability to fully expense such investments is crucial for maintaining competitiveness and ensuring safety in operations. The farmer warned that without legislative action, the gradual reduction of this tax benefit could hinder their ability to invest in necessary equipment.
Business owners echoed these sentiments, particularly regarding the 20% small business deduction that could expire. They expressed that an increased effective tax rate would severely impact their ability to compete with larger corporations, which often benefit from lower tax rates and greater resources. The potential loss of this deduction was described as devastating, as it directly affects their capacity to reinvest in their businesses and provide competitive wages.
The meeting also touched on the broader economic impact of the 2017 tax cuts, with witnesses noting that these changes spurred significant increases in investment and job creation. A representative from Home Depot detailed how the reduction in corporate tax rates allowed for substantial investments in wages and supply chain enhancements, reinforcing the importance of maintaining a competitive tax environment to encourage domestic business operations.
Overall, the discussions underscored a collective call for lawmakers to consider the ramifications of tax policy changes on families, agriculture, and small businesses, highlighting the critical role these sectors play in the economy.
One parent highlighted the financial strain of healthcare costs and unexpected home repairs, urging lawmakers to maintain the current tax threshold of $2,000. They argued that reducing this amount would adversely affect families' abilities to afford essential services, particularly for young children requiring early intervention therapies.
Family farmers also voiced concerns regarding the phasing out of immediate 100% expensing for machinery and equipment, a provision introduced in the 2017 Trump tax cuts. A farmer shared their experience of needing to replace a costly combine, stressing that the ability to fully expense such investments is crucial for maintaining competitiveness and ensuring safety in operations. The farmer warned that without legislative action, the gradual reduction of this tax benefit could hinder their ability to invest in necessary equipment.
Business owners echoed these sentiments, particularly regarding the 20% small business deduction that could expire. They expressed that an increased effective tax rate would severely impact their ability to compete with larger corporations, which often benefit from lower tax rates and greater resources. The potential loss of this deduction was described as devastating, as it directly affects their capacity to reinvest in their businesses and provide competitive wages.
The meeting also touched on the broader economic impact of the 2017 tax cuts, with witnesses noting that these changes spurred significant increases in investment and job creation. A representative from Home Depot detailed how the reduction in corporate tax rates allowed for substantial investments in wages and supply chain enhancements, reinforcing the importance of maintaining a competitive tax environment to encourage domestic business operations.
Overall, the discussions underscored a collective call for lawmakers to consider the ramifications of tax policy changes on families, agriculture, and small businesses, highlighting the critical role these sectors play in the economy.
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