NFU Statement: Salazar to Lead Interior Department — 12|18|08
Friday, January 16, 2009
Tax Policy
Estate Tax
National Farmers Union supports estate tax relief for family-owned farms, ranches and small businesses to allow the transfer of those enterprises on to the next generation. We support increasing the federal estate tax exemption per estate to $4 million immediately, index the exemption annually, simplify the exemption qualification rules and requirements, and implement graduated rates.
Estate Tax Facts (PDF Document)
Estate Tax Talking Points (PDF Document)
CBO Report on Farms & Estate Tax
Income Tax Reform
We support a more progressive tax structure and oppose a flat tax. Any tax reform should allow for the full deductibility for the individual payment of premiums for health, disability, long-term care and life insurance. In addition, Congress should provide a limited refundable federal income tax credit equal to all or a percentage of the state and local real estate taxes paid on farmland utilized for commercial production agriculture paid by farmers and ranchers. We support allowing income from a farm sale to be put into a tax-deferred individual retirement account (IRA). We encourage increasing the annual gift tax limits to $25,000 per individual.
States Tax for Multinational Corporations and Resources
We oppose legislation and court action that would prohibit states from taxing multi-national corporations based on the volume of business done in the state.
We encourage legislation that would hold multi-national corporations responsible for their full tax burden.
NFU supports the right of state governments to tax production of nonrenewable resources such as coal, oil and minerals. These taxes are the means by which a state can recover its costs from social, economic and environmental impacts and provide compensation for resource depletion. We oppose unfunded federal mandates being imposed on state and local jurisdictions.
Tax Credit
We believe that a properly designed tax credit can encourage new enterprises in rural communities and could be a stimulus for encouraging new family farms and an opportunity for retiring farmers to sell their operations to beginning family farmers. We support a tax credit, targeted to the seller of farm land, who sells to a beginning or young farmer. The credit would also be extended to a sale from one generation to the next. This could also be applied to small businesses.
We urge reform of U.S. capital gains tax laws to allow tax-free conversion of farm assets, i.e. breeding livestock, equipment, real estate, grower quota rights, and other farm investments in exchange for investments in all categories available to the general public and other business entities. Forced sale of assets under receivership of bankruptcy should not result in tax liabilities that exceed the capacity of asset liquidation funds to meet those tax obligations. In the agricultural sector, equipment investments often consist of used equipment. We support an investment tax credit for new and used equipment. We support a $500,000 capital gains exemption tax on farm real estate sales comparable to the current residential sales exemption.
Banks and Credit
Money and Credit Policy
Congress should insist on consumer, farmer and small business representation on the Federal Reserve Board (Fed), provide for allocation of credit, and require the Fed to comply with provisions of the Humphrey-Hawkins Full Employment and Balanced Growth Act of 1978. We demand that Congress immediately authorize a nonpolitical outside entity to conduct a thorough audit and investigation of the Federal Reserve Board and its policies.
Bank Regulation
From the beginning of this country, public policy has favored a decentralized banking system, avoiding the abuses that would come from a highly concentrated financial structure. NFU is concerned about recent trends in bank regulation that have accelerated the loss of independent community banks and have decreased the banks’ desire to service agricultural credit needs. The loss of community banks has also reduced community reinvestment.
Credit Unions
We support maintaining the National Credit Union Share Insurance Fund as a separate and independent agency from other federal deposit insurance systems. We are unalterally opposed to any proposal that seeks to curtail services by credit unions to their members under the false guise of regulatory reform or financial soundness. Such proposals are especially discriminatory against rural credit unions that provide agricultural credit services.
NFU supports the credit union movement in its efforts to combat the anti-competitive regulatory tactics undertaken by other segments of the financial services industry. We support the right of all Americans to choose how and where they deposit their earnings and transact their personal financial business. 
