Impact of Capital Gains Taxes on Farmers: Hearing Before the Committee on Agriculture, Nutrition, and Forestry, United States Senate, One Hundred Fifth Congress, First Session ... February 26, 1997 |
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acre agriculture Alan Greenspan alternative minimum tax American appreciate average basis bill Branstad budget CALIMAFDE capital gains rate capital gains tax Chairman committee Congress death tax Dick Armey economic growth effect eliminate Estate and Gift exemption family business family farms farmer cooperatives farmland Federal estate tax flat tax FURCHTGOTT-ROTH gains for inflation gains tax cut Gains Tax rate Gift Tax going Harl hearings IBAA income tax increase inflationary inheritance tax investment investors Iowa ital gains Jack Kemp KEMP land legislation long-term capital gains million National NCFC nomic operations owners percent pork producers President proposal reduce repeal retirement revenue sell Senator HARKIN Senator Landrieu small business Tax Code tax law tax on inheritances tax policy tax reform tax relief tax shelter tax system taxation taxpayers testimony Thank tion transfer U.S. SENATOR wealth
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Page 95 - A tax is hereby imposed on the transfer of the taxable estate of every decedent who is a citizen or resident of the United States.
Page 95 - The estate tax took its present form primarily in the early 30's. The express purpose was to break-up wealth. One must question whether this is consistent with a free enterprise economic system and a very competitive world economy? Also, is it consistent at a time when the projected standard of living for our children will be worse than it is for their parents? The estate and gift tax cannot be justified as playing an important role in financing the federal government; it now brings in less than...
Page 88 - BAA urges, in the strongest terms, that the current grim reaping machine of the federal estate tax be thoroughly reexamined, for both economic and social reasons. These taxes discourage investment where we need investment to remain worldcompetitive. They separate our most enterprising people from the enterprises their families have built, where our nation needs to preserve traditional family enterprise. An extensive study by the Heritage Foundation in Washington, DC concluded as follows: "the economic...
Page 88 - US deposits) make almost 30 percent of small business loans of less than $100,000. Often, a community bank is the only financial institution in a small town or rural area. Banks as small as 8 employees and $15 million in assets have experienced estate tax problems. Should current IBAA owners plan to increase their investment, to better serve their customers, and incur greater estate tax risks, or should they plan to sell out? If owners are replaced with less experienced branch managers, business...
Page 42 - I was one of 1 ,700 small business owners who voted to make the definition of the independent contractor the top legislative priority. The following statement is included in the final White House Conference recommendations and I quote: "The definition of an independent contractor must be clarified. Congress...
Page 38 - ... marketing, supply and credit cooperatives, plus the state councils of cooperatives in 31 states. NCFC's members, in turn, represent nearly 4,000 local cooperatives, with a combined membership that includes approximately 1.6 million farmers in the United States. NCFC members handle almost every type of agricultural commodity produced in the United States. Farmer cooperatives are self-help organizations that were formed, and operate today, to meet the needs of farmers for reliable and fairly-priced...
Page 96 - It generates complex tax avoidance schemes, it promotes spending instead of saving and it promotes people giving up on the family business or farm. The hardest hit by the tax are small business people who work hard to pass on their farm or business to their children. To this end, a complex family business carve out has been introduced into legislation, S. 2. It is similar to the 2033A which was in the Balance Budget Tax Act of 1995. The problem is that this carve-out is much too complicated. Optimistic...
Page 95 - ... is time to repeal these transfer taxes. President Clinton has expressed the desire to retain and increase jobs. Repeal would do this! • Only 30% of family business make it through the second generation. Seventy percent (70%) do not. Only 13% make it through the third generation. Eighty-Seven (87%) do not. The primary cause of the demise of family businesses, after the death of the founder and the founder's spouse, is the 55% estate tax. It is hard for the successful business to afford enough...
Page 49 - Thank you, Mr. Chairman, for inviting me to testify today on the unfortunate amendment of the Copyright Act's work-made-for-hire provisions to include sound recordings.
Page 88 - ... are small businesspeople who work hard to pass on an enterprise of value to their children. And its bias against saving and wealth generation is the antithesis of the American Dream." (August 21, 1996, pages 3, 29). Fortunately, estate tax problems are increasingly being recognized. For example, in Iowa, Governor Branstad, on February 17, signed into law a bill that abolishes the state inheritance tax for lineal descendants. The combined vote of the Iowa House and Senate was 137-9. SENATE MAJORITY...