Agriculture, Business Organizations Oppose Tax Increases
The National Pork Producers Council has joined 191 agriculture and business organizations in voicing opposition to two key changes to the tax code that may become part of a budget reconciliation bill.
Media reports suggest Senate lawmakers want non-corporate taxpayers to expand the current 3.8 percent Net Investment Income Tax to all non-wage income and expand and extend the “excess business loss limitation.” Both provisions were included in the $1.6 trillion budget reconciliation package of mostly social welfare and environmental spending approved by the House last fall. For pass-through entities such as most pork operations, the increase would directly impact the bottom line, limiting deductions of excess business losses would reduce the ability of farm operations to recover from bad years, according to NPPC.
In a letter last month, the groups wrote, “In the face of a possible recession, 40-year high inflation, unprecedented supply-chain challenges, and chronic labor shortages, raising taxes on small, individually, and family-owned businesses is the wrong approach and should be rejected.”