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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 HatchHatch mocks Warren over DNA test with his own results showing '1/1032 T-Rex' Romney defends Trump’s policies as ‘effective,' disputes he led 'never Trump' movement GOP fractured over filling Supreme Court vacancies in 2020 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 GrassleyDems angered by GOP plan to hold judicial hearings in October American Bar Association dropping Kavanaugh review Clinton's security clearance withdrawn at her request MORE (R-Iowa), Pat RobertsCharles (Pat) Patrick RobertsGOP loads up lame-duck agenda as House control teeters Congress allows farm bill to lapse before reauthorization deadline Pat Robertson asks followers to help cast 'shield of protection' ahead of hurricane MORE (R-Kan.) and John ThuneJohn Randolph ThuneThrough a national commitment to youth sports, we can break the obesity cycle Florida politics play into disaster relief debate GOP chairman: FEMA has enough money for Hurricane Michael 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.