Fiscal Cliff Deal Includes Farm Bill Extension

A new year means new changes in support and taxes for Illinois farmers as Congress makes a "fiscal cliff" deal this week.

Farm Bill
The U.S. Senate and the House Ag Committee worked out a compromise and added a nine-month extension to the current farm bill. This extension also includes changes to dairy supports.

The National Milk Producers Federation sees it differently, calling the Senate vote "a devastating blow to the nation's dairy farmers. NMPF President and CEO Jerry Kozak added, "Dairy farmers across the country have united behind the Dairy Security Act provisions in the original farm bills that have already been approved by the full Senate and by the House Agriculture Committee. These stop-gap efforts don't even qualify as kicking the can down the road."

Estate Tax
Estates will be taxed at a top rate of 40%, with the first $5 million in value exempted for individual estates and $10 million for family estates. In 2012, such estates were subject to a top rate of 35%.

Income Tax Rates
Extends decade-old tax cuts on incomes up to $400,000 for individuals, $450,000 for couples. Earnings above those amounts would be taxed at a rate of 39.6%, up from the current 35%. Extends Clinton-era caps on itemized deductions and the phase-out of the personal exemption for individuals making more than $250,000 and couples earning more than $300,000.

Capital Gains
Taxes on capital gains and dividend income exceeding $400,000 for individuals and $450,000 for families would increase from 15% to 20%.

Illinois Farm Bureau has worked tirelessly to prevent the farming community from being carried over the fiscal cliff. Talking to legislators, speaking at Congressional hearings, explaining the complexities to the public… IFB and its members are dedicated to sound legislation and will continue to support it.