01-02-13 *CCA News* Fiscal Cliff Package…
Posted by Brian Allmer on January 2, 2013
Late last night, the House and Senate passed a “Fiscal Cliff Package”, which will be sent to the President for him to sign into law.
While this bill is not perfect for producers, it will assist in stabilizing commodity markets and contains several important points for agriculture. For instance, it extends the 2001 and 2003 tax rates for individuals with income below $400,000 ($450,000 per couple); which will be beneficial for the majority of agricultural producers. The rates for incomes over these thresholds have been raised by 4.6% (from 35 to 39.6%), and rates for dividends and capital gains will increase by 5%. Fortunately, the Death Tax exemption remains at $5 million for individuals, with $10 million per couple; however, the rate over that amount goes from 35 to 40%. Since states like Colorado often have small agricultural operations that can exceed the exemption, the Colorado Cattlemen’s Association will continue to pursue specific ag-related tax exemptions.
The Farm Bill was extended out to September 2013, and is still subject to appropriations. However, a new Farm Bill will be authored by a newly-seated Congress, and so CCA will continue to stay on top of this issue until the 2013 Farm Bill is passed. Several disaster relief programs are still being decided, and the limited assistance authorized for 2012 and 2013 is approved subject to appropriations. The assistance includes $80 million for livestock indemnity payments, $400 million for the livestock forage disaster program, and $50 million for emergency assistance for livestock.
The Association recognizes that the drought has been one of the greatest struggles of this decade. The beef industry must realize that engagement is essential in being able to deal with these issues. Attendance at Mid-Winter to meet members of the legislature and learn about and discuss various issues in committees is especially vital. We need everyone to do their part and help CCA continue to fight and protect the rights and interests of its members. Recruit today!
Colorado Cattlemen’s Association (CCA) is the state’s only nonprofit trade organization exclusively representing Colorado’s cattle producers. Founded in 1867, CCA is the nation’s oldest state cattlemen’s association. Visit us on the web at www.coloradocattle.org .