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Senators working on fix to agriculture provision in GOP tax law

Senators working on fix to agriculture provision in GOP tax law
© Greg Nash

Senate Finance Committee Chairman Orrin HatchOrrin Grant HatchOvernight Tech: Uber exec says 'no justification' for covering up hack | Apple considers battery rebates | Regulators talk bitcoin | SpaceX launches world's most powerful rocket Overnight Cybersecurity: Tillerson proposes new cyber bureau at State | Senate bill would clarify cross-border data rules | Uber exec says 'no justification' for covering up breach Hatch introduces bipartisan bill to clarify cross-border data policies MORE (R-Utah) said Wednesday that lawmakers are working on a fix to a provision in the new tax law that is having "unintended effects" in the agriculture sector.

The provision in question allows farmers to deduct up to 20 percent of sales to cooperatives but not to other companies.

"Though the aim of that provision, in part, was to preserve benefits previously available to agricultural cooperatives and their patrons for income attributable to domestic production activities, the current statutory language does not maintain the previous competitive balance between cooperatives, other agricultural businesses, and the farmers who sell their crops to them, which existed prior to enactment of the tax reform bill," Hatch said.

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The Finance Committee chairman said Sens. Chuck GrassleyCharles (Chuck) Ernest GrassleyOvernight Cybersecurity: Tillerson proposes new cyber bureau at State | Senate bill would clarify cross-border data rules | Uber exec says 'no justification' for covering up breach Overnight Finance: Senators near two-year budget deal | Trump would 'love to see a shutdown' over immigration | Dow closes nearly 600 points higher after volatile day | Trade deficit at highest level since 2008 | Pawlenty leaving Wall Street group Grassley to Sessions: Policy for employees does not comply with the law MORE (R-Iowa), Pat RobertsCharles (Pat) Patrick RobertsPat Robertson recovering from stroke GOP senator relieved Trump didn't mention NAFTA Senate Republicans call on Trump to preserve NAFTA MORE (R-Kan.) and John ThuneJohn Randolph ThuneOvernight Tech: Uber exec says 'no justification' for covering up hack | Apple considers battery rebates | Regulators talk bitcoin | SpaceX launches world's most powerful rocket Apple tells senator it may give rebates to consumers who bought iPhone batteries Republican agenda clouded by division MORE (R-S.D.), all panel members, are working on a solution to the issue.

"Once a suitable solution is identified, my goal is to work with my colleagues to advance legislation that can be sent to the president for his signature as soon as possible," Hatch said.

Hatch also said he wants to ensure that the Trump administration interprets the new tax law as Congress has intended.

"I’m going to keep working to ensure that everyone recognizes and respects Congress’ role in this process and the fact that the best place to get an explanation of Congress’s intent is Congress itself," he said.