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Show August 1968 UTAH FARM BUREAU Bennett Asks Tax Break For Farmers of seven new districts, map showing make-u- p present no Farm Bureau organizations exist in Daggett or Grand counties. When organized they will be placed in districts at the discretion of the House of Delegates. Senator Wallace F. Bennett, has Introduced legislation which would give a tax break to farmers and small businessmen whose Income fluctuates from year to year. The bill Introduced by Senator Bennett would amend the Individual Tax Retirement Act of 1962, which permits persons who are to establish their own retirement plans similar to those of corporate employees. My bill would amend the existing law to carry out the original intent of Congress which has been thwarted because of regulations Issued by the Treasury Department, Sen. Bennett said. The Utah Senator stated, The Original H.R. 10, Self Employment legislation severely restricted self employed persons whose income varied from year to year. As a result Congress amended the law in 1966 to provide that in pension plans funded exclusively with life insurance and the contriannuity contracts, bution can be equal to the average of the amounts deductible during the three years prior to the purchase of the pension plan. This is known as the Three -Year-Rule of averaging to take into account that income of privately employed persons may vary greatly from year to year. Unfortunately the Internal Revenue Service has ruled that Insofar as farmers and small shopkeepers are concerned the and the 30 Three -- Year-Rule limitation on income which can be invested in a private pension plan will only be applied to income R-Ut- ah, Self-Employ- ed self-employ- ed Pago 3 earned after 1968. I am sure Congress intended that formers and small businessmen who are self employed should have the same tax advantages as to professional and employees. Consequently, I have introduced this bill which has the strong backing of the farm Bureau and Small Sen. Bennett Business groups, concluded. The same amendment was reported favorably by the House Ways and Means Committee and probably will be considered by the House when Congress meets again after the August recess. I am introducing the bill in the Senate so that we can take favorable action on it in the Finance Committee just as soon as we get back and so that there will be no delay in gaining approval, he said. now granted corporate Farm costs reach new high; wheat price is 45 of parity Farm costs rose to a new record high in July. USDA reported on July 30 that, during the month ended July IS, the index of prices paid by farmers for commodities and services, includ-an- d farm wage rates advanced one point (IA of one percent). The July index ing interest, taxes, was 11 points (three percent) above a year earlier. Increases in farm costs were posted for family living items, feeder livestock, and wage rates, These were ofTset in part by a drop in feed prices. The decline in feed prices is due to a continuing decline in prices received by farmers for corn, grain sorghum, oats, barley, rye, and wheat. The Department reported that the July farm price for wheat reflected only 45 percent of the parity price down two points in a month. The farm price for cotton also fell to 45 percent of parity, while corn declined to 63 percent of parity. ....... . , Offsetting lower July prices for grains and cotton were higher prices for hogs, beef cattle, poultry and eggs, and fluid market milk. July price increases for commodities not covered by the Food and Agriculture Act of 1 965 were sufficient to more than offset lower prices for covered commodities. The result was an increase of one point (13 of one percent) in the index of prices received by farmers .for .all .com modities. USDA's monthly report showed that July prices for grapefruit, lemons, potatoes, and sweet potatoes were above 100 percent of parity. Hog prices stood at 84 percent of parity; beef cattle, 81; chickens and eggs, 71; soybeans, 74; and all milk, 87. The lowest July prices in terms of parity were those for cotton and wheat (45) and wool (46). More than 100 Farm Bureau volunteer leaders listened to Claude " de St. Paer discuss "Rights, Riots and Poor Peoples' Marches at . Fish Lake meeting. |