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News & Media: Staff Columns

Are big ideas dead?

Saturday, December 16, 2017   (0 Comments)
Posted by: John Holevoet, director of government affairs

At the time of this writing, the Republican tax reform package is heading toward conference committee and hopefully eventual passage. The bill is a massive undertaking to be sure, but it is not the top-down comprehensive reimagining of the tax system that House Speaker Paul Ryan had envisioned.

Speaker Ryan had a bold vision. His plan was a fundamental shift in tax policy, which included embracing value-added tax. I am not here to argue the pros or cons of this approach. Instead, I merely want to give him credit for a big idea.

At the end of the day, the House and Senate versions of the tax bill keep our current framework. Some deductions have changed or been eliminated. More importantly, individual tax rates and tax brackets will change. Exactly what they will become depends on the outcome of the committee’s work. The corporate tax rate will be significantly reduced and the estate tax will be far less common, if not eliminated.

Farmers and others in agriculture will benefit from many of these changes. There are losses for farmers, too, like the elimination of Section 199, a deduction that many agricultural cooperatives use and pass on to their farmer members. Other changes to the manner that pass-through entities, which most farms are, are taxed is meant to offset that loss.

At the end of the day, the tax reform package will probably be a good thing for agriculture. The question is could we have done more? The answer is probably no. Politically, the current package has been a huge lift. A truly transformative idea could not have made its way through.

Why do I care? One reason to worry about the potential death of big ideas is that dairy farmers still need bold thinking. Changes to our immigration system and the way we recruit and retain agricultural workers are desperately needed. Half measures are not going to cut it for farmers.

The idea of a completely new type of agricultural visa is out there, but not everyone in agriculture is behind it. A fix might be in the works for the “dreamers,” but that is not a sure bet. There is even less chance that such a fix might be broadened to include a viable visa option for workers on dairy farms. If we are not included in this fix, the chances of any changes coming for the ag workforce this session are slim.

Farmers know there is a workforce problem. Many lawmakers understand this problem. Creative solutions have been proposed. Sadly, political will is where we fall short when it comes to making the significant changes that are needed. I am not optimistic, but I am still hopeful that we can have a breakthrough in 2018.

Dairy farmers are not afraid of taking risks and experimenting. They are “big ideas” people. Perhaps they are what is needed to bring bold thinking and action back to Washington, D.C.   


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