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House Releases Tax Reform Details




The following is from the American Horse Council:

House Releases Tax Reform Legislation, Moves Forward with Small Business, Estate Tax Relief

The House Ways and Means Committee has shared highlights and text on historic tax reform legislation, the Tax Cuts and Jobs Act of 2017.  While highlights from the bill are outlined below, AHC is currently reviewing the fine print of the 429-page legislation, received from the tax committee shortly after 12:00 PM ET.  Today’s release initiates a long over-due effort to streamline the nation’s 70,000 page tax code.  In a move that is consistent with advocacy from the equine industry and its allies, the House bill will repeal the estate tax after six years, and reduce rates for small business, or so-called “pass through” entities.  Please see the below highlights, focusing on issues that have the most significant impact on the equine industry:

Business Provisions

  • Small Business: The bill sets a maximum tax rate of 25 percent on small business, or “pass through” entities.  Under current law, small businesses can pay federal taxes at rates as high as 39.6 percent.
  • Corporate Tax Rate: The bill lowers the corporate rate to 20 percent, down from the current 35 percent corporate tax rate.
  • Expensing: The plan will “allow business to immediately write off the full cost of new equipment.”
  • Business Interest: The plan also states that small business will be able to deduct interest on loans that allow job creators to “hire workers and increase paychecks.”
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