The omnibus bill to fund the government includes a fix to a problem with the new tax law that created a loophole for farmers who sold to cooperatives, according to a GOP aide.
Farmer and grain industry lobbyists had offered a solution to the so-called “grain glitch” last week, one that was embraced by Republicans. Now, the fix is set to become law as part of the broader government spending bill with Democratic votes.
Congressional leaders were moving toward unveiling the $1.3 trillion fiscal year 2018 funding bill Wednesday for passage later this week or weekend.
The tax tweak is just one of many provisions embedded within the legislation, which is likelyto be the last must-pass bill to head to President Trump’s desk before the midterms.
At issue was a flaw in the law’s special tax break for businesses that aren’t C-Corporations. The flaw would have accidentally created a major incentive for farmers to sell to cooperatives rather than to other buyers. In doing so, they could have lowered or eliminated their tax liability.
Democrats have suggested they are not eager to help the GOP fix problems with the tax law, which passed with only Republican votes.
