The FLTC Tax Report


News from the Forest Landowners Tax Council

FLTC on 10/17/03

The following, from the Forest Landowners Tax Council, updates us on current federal tax events and legislation affecting non-industrial private forest landowners.

IRC Sec. 631(b) & RTA: The Senate Finance Committee has approved the Jumpstart Our Business Strength (JOBS, S.1637) Act, which replaces a tax regime that is very important to U.S. exporters. This legislation cuts taxes for U.S. manufacturers, sole proprietors, partnerships, farmers, small businesses, forest landowners and simplifies international taxes for U.S. companies operating overseas. The legislation is meant to head off trade sanctions from Europe that likely would force U.S. manufacturers and agricultural producers to slice jobs. But, the great result for forest landowners are the following provisions:

Death Tax: Senate Majority Leader Bill Frist (R-TN) and Senator Jon Kyl (R-AZ) and have agreed on a vote on the Death Tax Fairness Act of 2003 (S. 13) next March or April. There are currently 15 co-sponsors. The Death Tax Fairness Act amends the Internal Revenue and the Economic Growth and Tax Relief Reconciliation Act of 2001 to permanently repeal the estate and generation-skipping transfer taxes, effective January 1, 2005. H.R. 8 (House Death Tax Bill) passed 264 to 163 passed earlier this year. And, adding fuel to the effort: A new study indicates that a dynamic economic calculation of elimination of the death tax will result in an additional $38 million into the U.S. Treasury, not a shortfall as opponents have claimed.