PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Letter to Majority Leader McConnell and Speaker Ryan on Fixing the “Grain Glitch”

By at 12 March, 2018, 7:04 pm

The Honorable Mitch McConnell

Majority Leader

United States Senate

Washington, D.C.  20510

 

The Honorable Paul Ryan

Speaker of the House of Representatives

Unites States House of Representatives

Washington, D.C.   20515

 

Dear Leader McConnell and Speaker Ryan:

America’s small businesses and entrepreneurs continue to experience the extraordinary benefits of pro-growth policies that have boosted investment, economic growth and their confidence. The Tax Cuts and Jobs Act was a critical legislative accomplishment that is freeing up more capital for entrepreneurs and fueling economic growth.  This legislative achievement is indeed a tremendous one, with many Americans experiencing immediate benefits from this historic package. Our members are very grateful for your leadership.

There is an issue in the tax package, however, that must be fixed in order to sustain the positive outcomes that grow with each passing week. Specifically, the drafting error that produced the “grain glitch” must be addressed very soon to ensure the reaction to this error, as well as unintended consequences, are quickly contained and not allowed to spiral out of control.  The new farm co-op loophole created by the drafting error is causing great uncertainty, and has the potential to harm many small and independent businesses. In addition, some businesses are spending many thousands of dollars to become co-ops so they can benefit from the “glitch” while others are holding their collective breath in the hope that Congress acts to provide a solution.

The Tax Cuts and Jobs Act vastly curtailed the picking of winners and losers through the tax code, but the “grain glitch” produces a new class of winners. SBE Council urges you to restore tax-treatment equalization for selling to co-ops and to independent businesses. Obviously, the effects of the error could ripple across industries thereby harming the tax act’s success and undermine the positive reception it is receiving from the public.

SBE Council urges you to fix the glitch in the pending budget bill, whereby certainty can be restored.  Thank you for your leadership and ongoing support of America’s entrepreneurs and small business owners.  Please let me know how SBE Council can be helpful in this effort.

Sincerely,

Karen Kerrigan, President & CEO

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