House Agriculture Committee Chairman Collin Peterson and Ranking Member Mike Conaway sent a joint letter to Treasury Secretary Steven Mnuchin asking for restoration of the Section 199A tax provisions. The 2017 tax law included language that distorted the grain markets and hurt farmer-owned cooperatives. Changes were made in 2018, but Peterson and Conaway indicate the Treasury Department is moving forward with rules that conflict with the intent of Congress and the wording of the statute. In an interview with the Red River Farm Network, Peterson said he doesn’t think this will get fixed without changing the law. “With this pass-through stuff that they did that allows partnerships and corporations to take a fictitious 20 percent deduction that does not exist, that’s what screwed this up. You can’t fix this unless you fix that.”
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