02/21/06 Pushing for capital gains tax reform

Tax legislation is being prepared for Congressional approval. The budget sets aside 70 billion dollars for a tax cut. Both the House and Senate have passed their bills and both now have conferees trying to work out the differences. Sometime between now and the middle of March they should have final version for the full Congress to vote on. American Farm Bureau tax specialist Pat Wolff says farmers and ranchers want that bill to address the capital gains tax. WOLFF "Right now the top rate is 15 percent, down from 20 percent. That's set to expire at the end of 2008 and in the mix for this bill is a provision that would extend that 15 percent for two more years through 2010." Wolff believes that tax breaks not only help farmers and ranchers when they sell property but they stimulate the economy. WOLFF "Capital gains tax rates make agriculture more profitable and when you have a thriving economy and a profitable agricultural industry that increases revenues to the government." Wolff says 70 billion dollars is not enough to give both a two year capital gains extension and extension for the alternative minimum tax exemption. WOLFF "How to make it fit into a 70 billion dollar package." That's where the rubber hits the road and that's where the conferees have to come up with a solution. Today's Idaho Ag News Bill Scott