FARM BUREAU PRAISES BUSH'S SIGNING OF TAX RELIEF PACKAGE
WASHINGTON, D.C. -- The American Farm Bureau Federation is pleased that President Bush has signed into law a reduction in the capital gains tax rate, which is one of our priority issues, said AFBF President Bob Stallman.
The Tax Increase Prevention and Reconciliation Act contains a two-year extension of the 15-percent maximum capital gains tax rate. This is projected to cut taxes by $20 billion over 10 years.
"This is a key provision for farmers and ranchers who often have no choice but to pay high capital gains taxes because of the length of time they hold onto buildings, equipment and land," said Stallman. "When you consider that farmers and ranchers, on average, own their land for 30 years or more, it's easy to see why higher capital gains tax rates discourage folks from selling assets they no longer want.
"In addition, high capital gains taxes make it difficult for farmers and ranchers to expand or change their business operations. They also make it hard for young people to enter into farming and ranching because they can't afford to buy the land and other assets that are for sale from older neighbors. Therefore, land is more likely to be sold to a developer instead of another farmer."