KANSAS CITY, Mo. –Western Equipment Dealers Assn. (WEDA) has released the following statement today after the House took historic action to pass the Tax Reform Bill.
“From top line changes affecting all businesses to more specific changes to the tax code that disproportionately affect the farm equipment industry, there was much at stake for equipment dealers,” says Eric Wareham, VP Government Affairs, WEDA. “We worked closely with congressional members, staff, and other assn.’s to articulate the position of equipment dealers in a rapidly moving process. By working with the House Ways & Means Committee and other stakeholders we were able to secure an amendment to the House bill that exempts farm equipment dealers from limitations on interest deductibility. Without these necessary changes, many expanding and recovering businesses would have been unable to meet the business interest deduction requirements. WEDA is now working with the Senate to secure similar amendments to that chamber’s bill.”
With important changes to business interest deductions, WEDA was confident that dealers would stand to benefit from the proposed tax changes. The reduced business tax rates along with provisions like repeal of the estate tax will provide meaningful tax relief to the equipment dealer industry. In addition to that, the expansion of Section 179 deductions and full expensing will provide incentives for dealer’s customers to invest in new and used equipment.
As an advocacy assn. for equipment dealers, WEDA submitted the following positions:
- WEDA supports the overall goals of tax reform as laid out by the GOP framework. The proposed changes to tax structure for American businesses will bring desired tax relief that creates pro-competitive advantages for equipment dealers and their customers that will continue to make American agriculture a predominant producer in a global economy.
- WEDA supports revision of the current tax structure by reducing the maximum tax rate for small businesses and corporations as proposed by the House tax reform bill.
- WEDA supports the immediate and full expensing of capital investments for a period of at least five years, and increasing Section 179 deductions.
- WEDA supports an exemption for equipment dealers from limitations on business interest deductibility.
- WEDA supports the full repeal of the death tax and generation-skipping transfer tax.
- WEDA opposes elimination or modification of LIFO accounting practices.
“Changes to the tax code were necessary to make equipment dealers more competitive to continue driving productivity and growth in agriculture,” says John Schmeiser, CEO, WEDA. “Many of the changes in the tax reform bills will provide our members with the tax relief they need to continue growing successful companies and maintain the highest level of service for their customers.”