[Congressional Record (Bound Edition), Volume 146 (2000), Part 12]
[Extensions of Remarks]
[Page 16953]
[From the U.S. Government Publishing Office, www.gpo.gov]



   A BILL TO ENSURE THAT INCOME AVERAGING FOR FARMERS NOT INCREASE A 
           FARMER'S LIABILITY FOR THE ALTERNATIVE MINIMUM TAX

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                           HON. WALLY HERGER

                             of california

                    in the house of representatives

                        Thursday, July 27, 2000

  Mr. HERGER. Mr. Speaker, I rise today to introduce the Farmer Tax 
Fairness Act, along with my Ways and Means Committee colleagues, 
Representatives Thurman, Hayworth, Dunn, Tanner, Camp, McCrery, 
English, and Foley. This legislation will help ensure that farmers have 
access to tax benefits rightfully owed them.
  As those of us from agricultural areas understand, farmers' income 
often fluctuates from year to year based on unforeseen weather or 
market conditions. Income averaging allows farmers to ride out these 
unpredictable circumstances by spreading out their income over a period 
of years. Last year, we acted in a bipartisan manner to make income 
averaging a permanent provision of the tax code. Unfortunately, since 
that time, we have learned that, due to interaction with another tax 
code provision, the Alternative Minimum Tax (AMT), many of our nation's 
farmers have been unfairly denied the benefits of this important 
accounting tool.
  Our legislation directly addresses the concerns being raised by 
farmers using income averaging. Under the Farmer Tax Fairness Act, if a 
farmer's AMT liability is greater than taxes due under the income 
averaging calculation, that fanner would disregard the AMT and pay 
taxes according to the averaging calculation. As such, farmers will be 
able to take full advantage of income averaging as intended by 
Congress.
  This provision is a reasonable measure designed to ensure farmers are 
treated fairly when it comes time to file their taxes. I urge my 
colleague to join me in promoting greater tax fairness for our nation's 
farmers.

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