Spring 2006

THE FLTC TAX REPORT

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

On February 10, in his speech to the CPAC (Conservative Political Action Committee) conference, Senate Majority Leader Bill Frist (R-TN) announced that he will bring the death tax repeal to a vote in May. FLTC will be working with the American Family Business Institute and other allied organizations to encourage a more certain date, but we will also be stepping-up our efforts. FLTC will be: Working with allied groups to target those Senators whose votes are still in doubt, working with death tax repeal supporters in the Senate to supply them with the facts, figures and moral arguments for repeal, and working with grassroots allies.

FLTC has identified a probable U.S. House sponsor for the bill that has been crafted to re-establish income averaging for non-industrial private forest landowners. All federal tax and financial legislation is constitutionally required to originate in the House chamber and is delegated to their Committee on Ways and Means for deliberation.

FLTC commends the U.S. Senate for its February 14 vote to support an extension of the President's lower rates on capital gains and dividends as a step in the right direction toward lower tax rate permanency, which is vital to maintaining the strength of the American economy. FLTC encourages the House and Senate Conferees to indefinitely extend the 15 percent rate on capital gains and dividends that was put in place by the Jobs and Growth Act of 2003. If Congress fails to extend the 15% rate on capital gains and dividends, a slowdown in investment would be inevitable with a slow-down in job growth likely to follow.

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