Today Congressman Smith voted to keep a $622 billion tax increase from hitting American families. One of the most important provisions for farmers and small business owners in the Protecting Americans from Tax Hikes (PATH) Act is providing tax relief for equipment and property purchases through Section 179 of the tax code. The PATH Act would make permanent Section 179 expensing, allowing for an immediate deduction on equipment purchases for farmers and small business owners. Without action today the tax rate on that equipment would have increased by roughly 2000% at the end of the year. As a Member of the House Ways & Means Committee with jurisdiction over all federal taxation issues, Rep. Smith worked to help author and finally make permanent this important provision for those in equipment heavy businesses like farming.
“This is a major step to give farmers more certainty and peace of mind,” said Congressman Smith. “Without this action, taxes would have gone up on the very farmers that keep our rural economy moving. Making this provision permanent finally ends the charade of temporary extensions and patches of U.S. tax code policy. Working on and advancing major wins like this for the farmers of Missouri was the exact reason I fought to get on the Ways & Means Committee. We are finally allowing farmers, manufactures and small business owners to plan financially for the long term so that they can help grow their farm or business here in America.”
“The issues of Section 179 and bonus depreciation are important for soybean farmers because they give us the certainty as we grow through investments in new equipment and infrastructure,” said Missouri Soybean Association President Tom Raffety.
The bill is also good news for farmers who often don’t know their tax burden until the end of the year due to constant tax code changes. Additionally, permanently extending section 179 helps provide the framework and path forward for large scale U.S. tax code overhaul in 2016 and 2017. As a Member of the House Ways & Means Committee, Rep. Smith has been focused on reducing the complex and cumbersome tax code facing families and employers. Rep. Smith believes we need to replace the current code with a simpler, fairer and flatter system.
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