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 HatchTrump administration backs Oracle in Supreme Court battle against Google Timeline: Trump and Romney's rocky relationship Key Republicans say Biden can break Washington gridlock 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 GrassleyMcSally unveils bill to lower drug prices amid tough campaign Ernst endorses bipartisan Grassley-Wyden bill to lower drug prices Overnight Health Care: Nevada union won't endorse before caucuses after 'Medicare for All' scrap | McConnell tees up votes on two abortion bills | CDC confirms 15th US coronavirus case MORE (R-Iowa), Pat RobertsCharles (Pat) Patrick RobertsOn the Trail: Senate GOP hopefuls tie themselves to Trump Kobach says he discussed his Senate bid with Trump Republicans expect Trump to withdraw controversial Fed nominee MORE (R-Kan.) and John ThuneJohn Randolph ThuneMcConnell tees up votes on two abortion bills Senate votes to rein in Trump's power to attack Iran As many as eight GOP senators expected to vote to curb Trump's power to attack Iran 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.