Agricultural News
Mary Kay Thatcher Expects Temporary Tax Fix in Lame Duck- At Best
Mon, 15 Nov 2010 5:48:34 CST
The American Farm Bureau is calling on President Obama to work with Congress in the Lame Duck Session to move on estate tax relief, preserving capital gains tax breaks and extending other important tax provisions.
However, AFBF Policy Specialist Mary Kay Thatcher believes that the Democratic leadership will only provide a few months of tax relief in extending the end of life of the so called Bush tax cuts by perhaps six months. She also sees some temporary fix for a few months on the so called Death Tax, which currently stands at zero, but is set to return with a relatively small one million dollar exemption and a tax of 55% on all value above that. We talked with Mary Kay about all of these lame duck issues and more this past week while in Kansas City for the 2010 National Association of Farm Broadcasters annual meeting.
Click on the LISTEN BAR below to hear our conversation.
Meanwhile on Friday- AFBF released details of a letter sent to the White House urging action on several fronts. Here are details of that letter from AFBF President Bob Stallman:
In a letter sent this week to President Barack Obama, Stallman said, "No matter is more pressing for our nation's farmers and ranchers than prompt passage of legislation" that extends tax provisions that expired in 2009 or are set to expire at the end of this year.
"Farm Bureau calls on you to work with Congress to enact legislation before the end of the year in order to avoid the economic damages that that will be caused by tax increases and the uncertainty that surrounds the tax code," Stallman told the president.
On Nov. 18, President Obama is set to meet with congressional leaders from both parties to discuss the legislative agenda for the lame duck session of Congress.
The top issue on Farm Bureau's list for the lame duck session of Congress is estate tax relief. Without congressional action, the estate tax will be reinstated in 2011 with a $1 million exemption and a top rate of 55 percent, a reversion back to the level 10 years ago.
"For farmers and ranchers, passage of estate tax relief is the single most import tax issue left unresolved by Congress," Stallman told the president.
In his letter to President Obama and in previous letters to Congress, Stallman said Farm Bureau supports a $5 million estate tax exemption and top estate tax rate of 35 percent.
"The return of estate tax unaltered will strike a blow to farm and ranch operations trying to transition from one generation to the next," Stallman wrote. "In the late 1990s, twice the number of farm estates paid estate taxes compared to other estates, and it took two and half years of farm returns for a moderate-sized farm operation to pay estate taxes owed. A $1 million exemption is not high enough to protect a typical farm or ranch able to support a family. When coupled with a top rate of 55 percent, it can be especially difficult for farm and ranch businesses."
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