WASHINGTON Reps. Kenny Hulshof, R-Mo., and Karen Thurman, D-Fla., on Wednesday introduced legislation that would create special savings accounts for farmers.
Under the Farm and Ranch Risk Management Act, farmers and commercial fishermen could deposit up to 20% of their annual business income into tax-deferred accounts, or trust. They would have to remove the money within five years or face a 10% penalty.
The bill was referred to the House Ways and Means Committee.
This is the third time the bill has been introduced, with minor additions along the way such as the inclusion of commercial fishermen. A similar provision was part of broad tax legislation that was passed last year by Congress but pocket vetoed by President Clinton after lawmakers had adjourned. President Bush is expected to support it.
While the bill has received support on Capitol Hill, the Independent Community Bankers Association said some changes, such as removing the five-year time limitation, could improve it.