Cheese Makers Urge Feds to Fix Section 199A of Tax Code
Wisconsin Ag Connection - 02/16/2018
A Wisconsin dairy group is calling on federal lawmakers to modify language in Section 199A of the recently-approved tax reform policy to ensure a stable agribusiness economy. According to the Wisconsin Cheese Makers Association, the tax code allows
farmers to deduct 20 percent of their gross sales to cooperatives, but those selling to privately-held companies may only deduct 20 percent of their net income.
WCMA Director John Umhoefer says this has resulted in some concern for all sectors of the dairy industry.
"With members ranging from the nation's largest dairy cooperatives to small, multi-generation independent cheesemakers, Wisconsin Cheese Makers Association is urging lawmakers to work quickly to address the inequity created by the new Section 199A in
recent tax reform legislation," Umhoefer said.
The WCMA supports immediate Congressional action to restore or rebalance tax policy, providing stability for dairy producers and processors alike.