Texas Agriculture Daily News
AFBF supports the Farm Tax Parity Act
Wednesday, June 27, 2012
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The American Farm Bureau Federation (AFBF) has expressed its support for the Farm Tax Parity Act, introduced in Congress by U.S. Rep. Aaron Schock (R-Ill.). The Farm Tax Parity Act would ensure American farmers are treated the same as other small business owners by the Internal Revenue Service.
“Currently, a farmer who rents land out to their own farming corporation has to pay employment taxes on the rent they receive,” noted a news release from Schock. “This is different from any other industry in which rental income is treated as investment income and is not subject to self employment taxes.”
The bill aims to even the playing field for farmers and ranchers. Farm Bureau leaders have expressed the detriment these taxes have had on their small farm and ranch operations.
“I have heard from a number of my local farmers and Farm Bureaus that they are being aggressively and unfairly targeted by IRS audits on rental income,” Schock said. “The IRS operates in an inconsistent way in different parts of the country. All farmers in the U.S. deserve to be treated the same way and should not be discriminated against due to the location of their farm. The same rules should apply to everyone.”
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