Ag Groups Meet on Year-end Tax Issues

By CnAgri2012-11-02 19:21:00 Print

Ag and commodity groups from across the country have met this week to discuss expiring tax provisions that impact farmers and ranchers. A coalition of 34 farm groups wrote to Congress in April expressing support for reforming current estate tax laws before the end of this year.

Current law holds that the estate tax exemption will shrink to $1 million per person rather than the current $5 million beginning Jan. 1, 2013, with the maximum tax rate increasing to 55 percent from the current 35 percent.

Legislation has been introduced in both the House and Senate that would permanently repeal the estate tax, but neither chamber has acted on it. Estate taxes, as well as other expired and expiring tax provisions including the biodiesel tax credit, capital gains taxes, and deductions for health insurance for the self-employed, are expected to be among the many tax issues Congress may consider in a lame-duck session beginning Nov. 13.

The coalition agreed to deliver an updated letter on estate taxes to Congress following the election.