Home 5 Ag Stories John Block questions tax code changes and organic “cheating”

John Block questions tax code changes and organic “cheating”

Profit Matters 5-18-17

We are living in interesting times. We may be living in historic times but we won’t know until today becomes yesterday and we can look back.

This week John Block is concerned about losing the interest deduction for business if the tax code is changed.

“President Trump’s tax reform plan is not very specific, and I think that’s fine. The congress will write the legislation anyway,” Block said.

Cutting tax rates means finding the money somewhere. Federal taxes were just filed last month. Farms, and many small businesses borrower a lot of money to buy seed, fertilizer, machinery expenses. We deduct that interest charge from our income. That is a legitimate cost of doing business.

There are some members of congress that are thinking about denying the deduction to raise more tax money. Block said, “This is a red flag. We need to kill this idea before it gets any legs.”

He also questions organic certification per investigations by the Washington Post Newspaper.

The post is not convinced that HighPlain Diary in Colorado is delivering legitimate organic milk, and that there are fake soybeans and corn being distributed.

“About one half of the organic corn and soy that is fed to our livestock and poultry is imported. It may not be organic. Science tells us that organic is not any better for us than standard food, but it sure costs a lot more, and it may not even be organic,” Block concluded.

 

John Block’s commentary is underwritten by Crop Life America and the NACG.

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