Georgia Farm Bureau's Leadership Alert - December 29, 2010

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December 29, 2010

www.gfb.org

Vol. 28 No. 52

ESTATE TAX RELIEF INCLUDED IN BILL SIGNED INTO LAW BY OBAMA

President Barack Obama on Dec. 17 signed into law H.R. 4853, the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, which extends numerous tax provisions enacted during the Bush administration and establishes a new estate tax structure. The new law sets for two years an estate tax rate exemption of $5 million per person with a maximum rate of 35 percent that was supported by Farm Bureau. The estate tax was repealed for 2010 and without the legislation, an estate tax structure that allows an exemption of $1 million per person with a top tax rate of 55 percent would have gone into effect Jan. 1. At those levels, many family farms would be at risk. In addition to estate tax relief, the new law continues a number of other tax provisions supported by Farm Bureau. It extends lower capital gains tax rates for all taxpayers and lower income tax rates for all taxpayers until 2012. “Securing meaningful estate tax reform for farm and ranch families has been a top priority for Farm Bureau. We are pleased the House left intact the estate tax provision that provides a $5 million exemption and maximum rate of 35 percent,” said Georgia Farm Bureau President Zippy Duvall. The law also extends tax incentives for the production of biodiesel through 2012. It extends tax incentives for the production of ethanol and the tariff on imported ethanol through 2011. It also extends the alternative fuels tax credit for liquid fuels derived from biomass and other sources through 2011. The passage of the law followed a year-long Farm Bureau campaign on the estate tax issue, and lawmakers hoped it would boost the U.S. economy. “This is real money that’s going to make a real difference in people’s lives,” Obama said of the overall tax structure, “and I would not have signed this bill if it didn’t include other extensions of relief that were also set to expire - relief that’s going to help families cover the bills, parents raise their children, students pay for college, and business owners to take the reins of the recovery and propel this economy forward.” Under the bill, the Alternative Minimum Tax relief is extended through the 2011 tax year, and the higher Section 179 small business expensing provisions are extended through 2012. Also extended are expanded child and dependent care tax credits, marriage penalty relief and expiring unemployment benefits.


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Georgia Farm Bureau's Leadership Alert - December 29, 2010 by Georgia Farm Bureau - Issuu