A new crop of cotton-free clothes, hats, underwear and shoes could become a household staple in as little as a year, and could help save cotton farmers billions of dollars in taxes and help make the cotton industry more competitive.
The US cotton industry is suffering from an aging and declining crop of crops, which is one reason why the cotton trade is so heavily taxed.
The United States’ top two cotton exporters — US cotton and cotton-producing Japan — have seen their crops die off over the past few decades, with the two countries producing around half of all cotton grown worldwide.
As a result, the US cotton trade, which had grown at a rate of around $200 billion per year in the 1980s, has seen a decline of around 15 percent since 2000.
That’s a huge hit to the country’s bottom line, and in turn has led to an increasingly high tax burden on US farmers.
To help combat that, Congress in 2017 enacted a massive tax reform package that aimed to bring the United States into line with international standards for agricultural income tax.
But as we saw with other tax cuts in recent years, this tax reform bill has caused major problems for the US, as it does not apply to imports, such as cotton and wheat, that are grown domestically.
For example, US cotton growers could now face a 20 percent tax rate on imported cotton, a 25 percent tax on imported wheat, and a 35 percent tax in the case of cotton garments.
In some cases, those tax rates will even go up.
As the US loses the ability to import cotton, many American farmers will need to import more from abroad, and some are likely to find it much more expensive to do so.
According to a study by the Pew Charitable Trusts, the average cost of imported cotton garments in 2018 was $12,000, while the average price of imported wheat was $17,000.
For cotton, the cost of the most commonly imported crop is around $1,000 per garment.
This kind of tax is not new, and the US has been in the process of making it harder to import imports for decades.
But it is particularly galling for farmers in the cotton belt, which was one of the major cotton exporter countries before the introduction of the new tax in 2017.
In addition to the high cost of importing cotton and other crops, many farmers in cotton-rich areas are facing other tax burdens, including a 20-percent tax on all cotton sales that can take place outside of the US.
In 2018, for example, the tax in Mississippi alone hit farmers’ bottom lines by around $400,000 annually.
While this tax is particularly high in cotton, it could affect other cotton crops in the future.
For example, cotton farmers in Georgia could be taxed on imports of cotton products like cotton cloth, cotton wool and cotton fiber that is grown in the US and imports of crops like cotton rice that are also grown in Georgia.
For all these reasons, the cotton tax reform in 2017 was seen as a big step in the right direction, but it still left a significant gap.
The tax would also have affected a large amount of agricultural revenue, which could have helped offset the impact of the rising cotton tax on farmers.
In 2018, the Cotton Tax Relief Act, or CTRSA, was signed into law by President Donald Trump.
The CTRSA essentially replaced the $1.8 trillion farm tax cut passed in 2018 with a $1 trillion farm bill, which includes $1 billion for the cotton subsidy, $2.8 billion for a “cash incentive” to farmers and $2 billion for increased crop insurance.
It also extends a tax credit for cotton farmers to farmers who use the cotton for a crop that has not yet been harvested, and increases crop insurance rates to encourage them to sell cotton more often.
The CTRSA will go into effect on January 1, 2019, and farmers and their allies in Congress are expected to continue fighting for it, but so far, the fight seems to be going in the wrong direction.
For now, however, the Trump administration seems to have given up on trying to get a bipartisan deal on the tax overhaul passed in the Senate, which would have allowed the tax reform to pass with the support of both parties.
The Cotton Tax Reduction Act, the latest iteration of the CTRSA bill, passed the House on Thursday and is expected to be considered by the Senate next week.
The latest version of the Cotton Prevention Act, which passed the Senate in April 2018, would provide $7.3 billion in crop insurance payments to farmers, and $8.3 million in agricultural tax credits to farmers.
This bill would also extend the $3.9 billion Cotton Tax Rebate for cotton and $1 million in crop credit payments to other cotton farmers, with no extension for cotton textile producers.
The Tax Relief Extension Act, passed by Congress in April 2019, would give $7 billion in credit to cotton