Congress has returned to Washington, D.C., to conduct the lame duck session, during which U.S. farmers and ranchers hope legislators will address the looming fiscal cliff.
Legislators have two months to address the collision of major budget cuts and potential tax increases, including increases to the estate tax and capital gains tax.
Unless Congress acts before Jan. 1, the estate tax exemption will decrease from the current $5 million to $1 million per person and the tax rate will increase from 35 percent to 55 percent. Capital gains tax rates are scheduled to increase from the current 15 percent to 20 percent.
Farmers also are calling Congress to pass a five-year farm bill to provide more stability for American agriculture.
The American Farm Bureau Federation (AFBF) is asking farmers and ranchers to contact their legislators to express support for tax reform and a five-year farm bill during the lame duck session. Visit the FBACT Insider website and click on “Tax Issues” and the “2012 Farm Bill” sections to take action.