You’ve been granted free access to this subscribers only article.
New Medicare, health tax burdensome for ag families
WASHINGTON, D.C. -- New Medicare taxes, the health-insurance tax, and penalties for failure to meet coverage requirements will harm the nation’s farm and ranch families, the American Farm Bureau Federation told Congress March 5, according to a Farm Bureau press release.
The new Medicare Contribution Tax, which is a tax on unearned income such as capital gains, will burden farmers and ranchers more than many other taxpayers because farming and ranching is a capital-intensive business, the American Farm Bureau Federation noted in a statement submitted to the House Subcommittee on Oversight of the Ways and Means Committee.
Further, the imposition of the Medicare Contribution Tax when a farm or ranch is sold amounts to a “retirement tax” on agricultural producers because it will go into effect when farmers sell their businesses to fund retirement. Beginning farmers could be affected as well, as adding this tax on top of capital gains taxes will make it more difficult for them to acquire land needed to get started in business.
Farm Bureau supports repeal of the 3.8 percent Medicare Contribution Tax, that will be applied to “unearned” income of so-called high-income taxpayers and the new 0.9 percent Medicare tax that will be imposed on wages and self-employment income above established thresholds for high-income individuals.
The Farm Bureau also supports legislation to repeal the Health Insurance Tax, as it will raise insurance costs, making it harder for farmers and ranchers to purchase coverage for themselves, their families, and their employees.
In addition, the health-insurance coverage mandate accompanied by the threat of a tax penalty for noncompliance is only making the situation worse for people unable to afford health-care coverage in the first place, according to the American Farm Bureau Federation.
“Rural American families already pay a greater percentage of their after-tax family income on health insurance than urban American families,” according to the Farm Bureau. According to the Council of Economic Advisors, nearly one-quarter of families in rural areas spend more than 10 percent of their income on health-insurance coverage, compared with 18 percent in urban areas.
Protecting farmers’ and ranchers’ interests in debates on tax reform is a priority included in the American Farm Bureau Federation’s strategic action plan for 2013.
Your Opinions and Comments
Be the first to comment on this story!
You must be logged in to post a comment.
Agriculture Today Archives
County committee nomination period begins (June 22, 2016)
Hartmann takes the steer by the horns to win state championship (June 22, 2016)
La Vernia FFA wraps up school year with honors, scholarships (June 22, 2016)
Livestock Market Reports (June 22, 2016)
Root rot knocks out roses (June 22, 2016)
TDA Market Recap (June 22, 2016)
Texas Hay Report (June 22, 2016)
A student’s ag-related journey (June 15, 2016)
Family Land Heritage news (June 15, 2016)
Five dirty truths on agriculture (June 15, 2016)
Horseherb galloping through yards (June 15, 2016)
Kristin Storey: South Texas queen to compete for national title (June 15, 2016)
Livestock Market Reports (June 15, 2016)
Miller announces assistance for farmers devastated by floods (June 15, 2016)
No “rain, rain, go away” as precipitation persists (June 15, 2016)
Schwartz takes lead as Texas state veterinarian (June 15, 2016)
TDA Market Recap (June 15, 2016)
Texas Hay Report (June 15, 2016)
Texas Rural Leadership Program (June 15, 2016)
It’s almost rodeo time in Stockdale (June 8, 2016)
Livestock Market Reports (June 8, 2016)
Save seed pods for next fall (June 8, 2016)
TDA Market Recap (June 8, 2016)
Texas Hay Report (June 8, 2016)
Big Time Texas Hunts entries now on sale (June 1, 2016)
Burbridge leads the way in Buck Taylor roping event (June 1, 2016)
Farm Bureau solicits AgLead, FarmLead participants (June 1, 2016)
June 2016 Gardening Calendar (June 1, 2016)
Livestock Market Reports (June 1, 2016)
Save squash from vine borers (June 1, 2016)
State Farm Bureau testifies on agricultural use valuation (June 1, 2016)
TDA Market Recap (June 1, 2016)
Texas Hay Report (June 1, 2016)