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Passed: Tax Fairness for Farmers, Ranchers, and Small Businessmen Act of 1987  

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Posted (edited)

Ms Boxer introduces with thanks to Mrs Smith

 

A BILL

 

To amend the Internal Revenue Code of 1986 to restore fairness for farmers, ranchers, and small businessmen under the tax laws by restoring certain provisions changed by the Tax Reform Act of 1986, and for other purposes.

 

SECTION 1. SHORT TITLE

 

This Act may be cited as the Tax Fairness for Farmers, Ranchers, and Small Businessmen Act of 1987

 

Title 1: Amending Internal Revenue Code of 1986

1)     Amends estate tax provisions of the Internal Revenue Code to exempt from recapture any use valuation benefits of a qualified heir who rents the property to another qualified heir on a net cash basis.

A)    Applies this provision retroactively in connection with the estates of decedents dying after 1976.

B)    Repeals provisions of the Tax Reform Act of 1986 that eliminated income averaging.

C)     Increases from 25 percent to 50 percent the allowable income tax deduction for the health insurance costs of self-employed individuals and makes the deduction permanent (under current law it will expire after tax year 1989).

D)     Allows a one-time exclusion from gross income of up to $125,000 of gain realized by a farmer from the sale or exchange of land used for farming or ranching during the ten-year period preceding the sale.

E)    Permits a full investment tax credit carry forward to certain farmers (current law requires a 35 percent reduction).

F) Excludes property from the estate tax when that property is passed to a family member and the property has been used for farming during the ten-year period preceding the transfer

Edited by Brady

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The committee will come to order to debate this bill. 48 hours for debate.

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Madam Chairwoman,

 

I want to state my support for this legislation and will offer an amendment to improve it further.

 

Family farms are the backbone of much of our country, yet in my district and in districts throughout rural America families are being forced out of farm work and selling property that has been with them for generations to developers and to corporate farms. Why? Largely because our tax code gives huge advantages to corporate farms and huge tax bills to family farms.

 

My district produces more tart cherries than I believe any other congressional district does, and most of our orchards are owned by family farmers. Every single one of those farmers worries about what will happen to the farm when they pass away. Many don't know how they will be able to pay the estate tax and keep the farm. Others plan to sell off most of the farm and continue farming just a bit of their original land. This is unethical and hurts our family farmers right when they are already hurting from the death of a loved one. That's why I support this bill and why I move to amend by adding the following provision:

 

Quote

F) Excludes property from the estate tax when that property is passed to a family member and the property has been used for farming during the ten-year period preceding the transfer

 

Thank you, I yield.

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Madam Chairwoman, 

 

I second the Jacobs amendment. 

 

I yield. 

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Jacobs I passed by a 2-1 vote.

 

The committee will now vote on this bill. 24 hours for voting.

 

Aye

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