WASHINGTON – U.S. Representative Jason Smith (Mo.), chairman of the tax-writing Ways and Means Committee, has highlighted several provisions he secured in the recently enacted One, Big, Beautiful Bill that will provide significant tax relief to Missouri farmers, ranchers, and small businesses.
“The One, Big, Beautiful Bill is a major victory for rural communities across southeast and south-central Missouri,” said Smith. “As Chairman of the Ways and Means Committee, my number one priority in writing the tax provisions in this landmark legislation was delivering for the men and women who drive our rural economies: farmers, ranchers, and small businesses. This bill doesn’t just deliver the largest tax cut for working families in our nation’s history, it also includes numerous tax provisions to help our rural communities take advantage of the great economic opportunities as America enters its new Golden Age. I will continue working hand-in-hand with President Donald Trump to advance the solutions we need to strengthen our rural communities.”
Smith led the effort in Congress in writing the tax provisions in the One, Big, Beautiful Bill. As a cattle rancher and 4th generation owner of his family farm, Smith knows first-hand how significant an impact tax policy has on the agriculture industry, which is the top economic driver in southeast and south-central Missouri. All told, the bill is projected to lower taxes on farmers by more than $10 billion. The 100% immediate expensing provision is among the most important pro-farmer, pro-small business tax policies Smith successfully worked to include in The One, Big, Beautiful Bill. The provision will fuel investment, innovation, and growth in rural Missouri. It allows businesses to automatically deduct the full cost of equipment, machinery, and vehicles – whether it’s a farmer buying a new combine, a florist purchasing another delivery truck, or a factory adding a conveyor line.
Smith also led the effort on writing a provision to deliver relief from the dreaded Death Tax. By expanding and making permanent the Death Tax exemption, more families will be able to pass on family-owned farms or small businesses to the next generation. Without this provision, more than 2 million family-owned farms would have had their death tax exemption slashed in half next year.
The permanent small business deduction is another key provision Smith successfully secured in the bill. With 98% of farms in the U.S. classified as pass-throughs, this provision will significantly benefit Missouri’s agriculture industry. Without action by Congress, the small business deduction would have expired at the end of this year, resulting in a $2,500 tax increase for family farms utilizing the deduction. Smith also secured a provision that will significantly improve the Opportunity Zone program, which was originally established under the 2017 Trump tax cuts to encourage greater investment in distressed communities. The One, Big, Beautiful Bill modifies the program to ensure investment is driven to rural areas.
Thanks to Smith’s advocacy, the 1099-MISC threshold has been increased to $2,000, which will reduce the paperwork burden for small businesses and workers. For example, under current law, a rancher who pays someone more than $600 to haul hay or put up a fence would have to fill out a 1099 tax form. By increasing the threshold to $2,000, farmers, ranchers, and small businesses will have less paperwork and more time to spend running their operation. |