Featured Articles

‘Grain Glitch’ Fix Not Included in Omnibus Yet, Thune Says

Posted on March 21, 2018 by Asha Glover, David van den Berg

A correction to language in the new tax law that mistakenly gives a competitive advantage to farmers who sell to cooperative grain suppliers is not currently included in the omnibus spending deal, a top Republican said.

“It wasn’t as of late last night,” Senate Finance Committee member John Thune, R-S.D., told reporters March 20. “We’re still working it and hoping.”

House Ways and Means Committee Chair Kevin Brady, R-Texas, also said that negotiations were ongoing to include a correction in the spending bill.

“There’s strong support, obviously, for the farm co-op solution, so hopefully we’ll get it done,” he said. “We’re just working to solve this problem.”

The so-called grain glitch in the recently passed Tax Cuts and Jobs Act (P.L. 115-97) provides a larger tax benefit to farmers who sell to cooperative grain suppliers than to other companies under the section 199A passthrough business income deduction. House and Senate lawmakers announced an agreement March 13 to resolve the issue.

Legislative text of the omnibus spending bill had not been filed by press time. “We anticipate the House filing later today, which will give the Senate plenty of time to take a look at it and see what’s in it,” Senate Majority Leader Mitch McConnell, R-Ky., told reporters at a weekly press briefing.

McConnell did not rule out the possibility that lawmakers may still be working to pass the omnibus bill after government funding expires March 23. “What my focus is on is finishing this omnibus appropriation, which will fund the government through September 30, and we’re going to to do it this week,” he said. “As long as that takes, that’s the time we’ll put in to get there.”

Lawmakers have also said that online sales tax provisions will not be included in the omnibus.

House Republican Whip Steve Scalise of Louisiana told reporters that lawmakers negotiating the omnibus package are “working through the final pieces.”

“Some of the things that were sticking points this morning may already be resolved,” he said. “Until they resolve all of them they don’t want to kind of go point-by-point.”

Dylan F. Moroses contributed to this article.

Follow Asha Glover (@AshaSGlover) and David van den Berg (@TATaxDavidVDB) on Twitter for real-time updates.