We are also concerned about recent news reports indicating that targeted cuts may be made to USDA marketing and export programs in order to pay for an overall tax relief plan. We urge you to fully fund USDA marketing and export programs. Estate taxes for family farmers should be eliminated. As enterprises are passed on, beneficiaries are forced to sell large portions of land, machinery or other assets to simply pay the taxes. The results are that many operations are forced to liquidate some assets or are forced out of business altogether.
Taxes paid on capital gains prove to be disincentives for agricultural producers.
Agricultural operations require large amounts of capital to operate efficiently and that efficiency is taxed away through high taxes on capital gains. This exemption should also be indexed to reflect inflation. ASA account dollars would be taxable only in the year of withdrawal, have no time limitation, and able to be converted to a retirement account when a producer retires. Non-taxable withdrawals would be allowed for education and medical purposes only of self, immediate family, dependents and employees and all other provisions as provided for in IRA's. Prescriptions, Medicare and medical supplies should also be tax deductible.