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WASHINGTON, D.C. (August 6, 1999) - Tax relief measures approved by Congress are permanent solutions that will help keep family farmers and ranchers in business and will make it easier to keep farms and ranches in the family, the National Cattlemen's Beef Association (NCBA) said today. The tax measures also will help protect the environment from land fragmentation and will preserve open space by keeping farms and ranches intact, NCBA said.
"Cattle producers have made their voices heard. NCBA's top tax priorities: repeal of the death tax, reductions in capital gains tax rates and income management tools all are a part of the package," said George Swan, NCBA president and a cattle producer from Rogerson, Idaho.
Capital gains rate reductions, when coupled with the 1997 tax relief measures, would save cattle producers as much as $150 per head.
"What's more, immediate 100 percent deductibility of health insurance for the self-employed and relief from the alternative minimum tax, also key parts of NCBA tax policy, were approved," Swan said.
Congress today will recess for the August congressional break and will be back in session the first week in September. At that time, Congress is expected to forward the bill to the President.
"With the August recess, now is the time to pull out all the stops and let congressmen and the administration know how important these tax relief measures are to cattle producers," Swan said.
"Without even reading the final bill, the President has announced he expects to veto it in September. But if enough noise is made throughout August, the bill could be signed into law," he added.
The 1999 tax relief bill would:
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Phase out the death tax by 2009. This is expected to simplify the estate planning process and save family farmers, ranchers and other affected by the tax $4-5 million annually starting in 2002 until repeal.
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Reduce individual capital gains rates from 20 percent to 18 percent for one bracket and 10 percent to 8 percent for the other bracket, effective retroactively to January 1, 1999. A producer selling 20 breeding bulls at $1500/head, which have been held for 24 months, would save an additional $30 per head on top of the savings implemented in 1997, which were worth $120 per head for the upper bracket and $75 per head for the lower bracket.
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Complement income averaging with income management accounts that would allow dollars in pre-tax savings accounts to be used to cope with natural disasters. This is expected to save agricultural producers $75-100 million annually.
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Implement full deductibility of health insurance for the self-employed by 2000. This would save $382 annually per person.
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Phase out the alternative minimum tax by 2008.
-- NCBA --
Initiated in 1898, the National Cattlemen's Beef Association is the trade association of America’s cattle farmers and ranchers, and the marketing organization for the largest segment of the nation’s food and fiber industry. NCBA is producer-directed but consumer-focused, with offices in Denver, Chicago and Washington D.C. |