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Lawmaker Proposes Legislative Fix For 199A Tax Code
USAgNet - 03/20/2018

Congressman Steve King from Iowa is releasing the text of a letter he has sent to House Ways and Means Committee Chairman Kevin Brady in which King proposes a legislative fix for a mistake in the tax code affecting co-ops and private grain elevators. While the recently enacted Tax Cuts and Jobs Act has been a remarkable success for many, a mistake in the law's revisions to Section 199A has distorted the competitive market between co-ops and elevators, granting large tax advantages to those who sell their commodities to a co-op instead of to a private elevator.

"It is my position to bring both co-ops and private elevators to a revenue neutral level," said King. "My proposal would bring both co-ops and private grain elevators together so there is an equal incentive for farmers. This proposal does not pick winners and losers, but it does put choice back in the market."

King does not want to see the tax code used to pick winners or losers, and he is urging Chairman Brady to adopt King's proposal which brings both co-ops and private elevators together at a revenue neutral level. Adoption of King's fix to 199A would ensure that competition and choice remained key drivers of the marketplace, instead of a poorly drafted provision of the tax code.


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