Major changes to the federal tax code would be detrimental to Iowa farmers and businesses, ISA and others said in a letter this week. (Photo: Iowa Soybean Association)
Letter urges tax code provisions be kept intact
September 23, 2021 | Bethany Baratta
As Congress begins to draft legislation under the recently adopted Fiscal Year 2022 Budget Resolution, the Iowa Soybean Association urges Iowa’s elected delegation in Washington, D.C. to leave the long-standing tax code provisions unchanged.
The ISA joined 33 other Iowa associations and businesses in the letter, saying that the current tax code provisions are “fundamental to the financial health of Iowa businesses.”
Changes to stepped-up basis, 199a pass through income decisions, and like-kind exchanges would be detrimental to Iowa farmers and businesses, the letter said.
“All businesses, large or small, must continually adapt and reinvest to stay efficient and competitive in the marketplace,” the letter said. “They must do this while dealing with cash flow challenges that come from thin profit margins and from having to pay ongoing operating expenses with sometimes uneven or seasonal income.”
A heavy tax burden would further reduce financial resources, the group said.
“Eliminating or reducing key business provisions will result in a huge tax increase for Iowa business at a time when they can ill afford it,” the groups said. “Our economic recovery from the COVID-19 pandemic is just beginning, and large tax increases would only stifle our ability to return to economic prosperity.”
Read the letter: Iowa Tax Coalition Letter.pdf