[Congressional Record Volume 141, Number 91 (Tuesday, June 6, 1995)]
[Extensions of Remarks]
[Page E1163]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


    THE TAX FAIRNESS FOR FARMERS, RANCHERS, AND SMALL BUSINESSES ACT

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                            HON. TIM JOHNSON

                            of south dakota

                    in the house of representatives

                         Tuesday, June 6, 1995
  Mr. JOHNSON of South Dakota. Mr. Speaker, I am pleased today to 
introduce legislation that will provide for tax changes to benefit 
farmers, ranchers, and small businesses. This legislation is entitled 
the ``Tax Fairness for Farmers, Ranchers, and Small Businesses Act.''
  This bill contains three major changes in Federal tax policy which 
will help to support farmers and ranchers through bad years, support 
the entry into business of beginning farmers, ranchers and small 
businesses, and place family farmers, ranchers and small businesses on 
a level playing field with their corporate counterparts.
  The first change this bill would make is to create a form of income 
averaging under which farmers and ranchers would be permitted to carry 
forward any standard deductions and personal exemptions that go unused 
during a low-income year. This would help farmers and ranchers even out 
the cycle of ups and downs in agricultural income caused by the 
weather, giving them increased ability to recover after a devastating 
year.
  Second, this bill would help promote beginning farmers and small 
businesses, by allowing a one-time capital gains exemption up to 
$500,000 for farmers and ranchers over 55 who sell their farm or ranch 
to a qualified beginning farmer or a lineal descendent, and by allowing 
a similar exemption for owners of small businesses who sell the 
business to a lineal descendent. A retiring farmer would therefore have 
an incentive to sell his land to a beginning farmer, and because of the 
tax break he would be able to offer that land for sale at a lower price 
than he otherwise might demand.
  Third, this legislation would establish and make permanent a 100-
percent deduction of health insurance premiums for self-employed 
persons. Corporations have the ability to deduct the full cost of their 
health insurance premiums, and it is only fair for farmers and small 
business owners to have the same right. It is time for this inequity to 
end.
  Mr. Speaker, I ask that you and the rest of my colleagues join me in 
supporting this legislation, and work with me to bring tax fairness to 
our Nation's family farmers, ranchers, and small business owners.


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