Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211

advertisements
   
   
   
   
   
   
   

Agricultural News


New Taxes Burdensome for Farm and Ranch Families

Tue, 05 Mar 2013 12:57:32 CST

New Taxes Burdensome for Farm and Ranch Families
New Medicare taxes, the health insurance tax and penalties for failure to meet coverage requirements will harm the nation’s farm and ranch families, the American Farm Bureau Federation told Congress today.


The new Medicare Contribution Tax, which is a tax on unearned income such as capital gains, will burden farmers and ranchers more than many other taxpayers because farming and ranching is a capital-intensive business, AFBF noted in a statement submitted to the House Subcommittee on Oversight of the Ways and Means Committee.   


Further, the imposition of the Medicare Contribution Tax when a farm or ranch is sold amounts to a “retirement tax” on agricultural producers because it will go into effect when farmers sell their businesses to fund retirement. Beginning farmers could be affected as well, as adding this tax on top of capital gains taxes will make it more difficult for them to acquire land needed to get started in business.   


Farm Bureau supports repeal of the 3.8 percent Medicare Contribution Tax that will be applied to “unearned” income of so-called high-income taxpayers and the new 0.9 percent Medicare tax that will be imposed on wages and self-employment income above established thresholds for high-income individuals.


Farm Bureau also supports legislation to repeal the Health Insurance Tax as it will raise insurance costs, making it harder for farmers and ranchers to purchase coverage for themselves, their families and their employees.


In addition, the health insurance coverage mandate accompanied by the threat of a tax penalty for noncompliance is only making the situation worse for people unable to afford health care coverage in the first place, according to AFBF.


“Rural American families already pay a greater percentage of their after-tax family income on health insurance than urban American families,” noted AFBF. According to the Council of Economic Advisors, nearly one-quarter of families in rural areas spend more than 10 percent of their income on health insurance coverage, compared with 18 percent in urban areas.


Protecting farmers’ and ranchers’ interests in debates on tax reform is a priority included in AFBF’s strategic action plan for 2013.


   

 

WebReadyTM Powered by WireReady® NSI

 


Top Agricultural News

  • Oklahoma Grain Elevator Cash Bids as of 2:00 pm Wednesday, April 24, 2019  Wed, 24 Apr 2019 16:30:31 CDT
  • Oklahoma National Stockyards Under New Management, Kellie Payne Named General Manager  Wed, 24 Apr 2019 16:15:10 CDT
  • Wednesday Market Wrap-Up with Justin Lewis  Wed, 24 Apr 2019 15:24:36 CDT
  • Tyson Getting Out of Plant Based Beyond Meat But Signals Plans to Starting Their Own Alternative Protein Product Line  Wed, 24 Apr 2019 14:08:59 CDT
  • Wednesday Afternoon Market Wrap-Up with Carson Horn   Wed, 24 Apr 2019 14:06:36 CDT
  • OACD Awards Seth Stone, Hunter Jordan as the 2019 Mike Thralls Memorial Scholarship Winners  Wed, 24 Apr 2019 11:35:07 CDT
  • Oklahoma Elk Farm Quarantined After Confirmed Case of Chronic Wasting Disease Found at Facility  Wed, 24 Apr 2019 11:27:00 CDT
  • Check Out Bryant Hague of the Edmond FFA Chapter, Your 2019 Central Area Star in Ag Production  Wed, 24 Apr 2019 11:09:51 CDT

  • More Headlines...

       

    Ron salutes our daily email sponsors!

    Herbs Herb Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit P&K Equipment Tulsa Farm Show AFR Insurance Stillwater Milling KIS FUTURES, INC. Oklahoma Cattlemen's Association

    Search OklahomaFarmReport.com


       
       
    © 2008-2019 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.