POLICY
STATEMENT
The
Grange supports taxing policies that levy both personal and business taxes based
on ability to pay. We believe in and support a graduated income tax, because we
believe that most citizens have a greater understanding and respect for government
when they have a part in providing revenue for the programs of government. Taxes
should not be punitive or excessive.
The
Grange has a long and consistent history in support of sound fiscal policy. We
believe budgets should be balanced. We recognize there are times or circumstances
to support deficit spending and the creation of debt, but that must be the result
of a careful evaluation of the need and what delay will cost in the future, or
how the delay will impact the current need.
We seek a simpler set of tax regulations. Previous federal tax reform efforts
have resulted in more confusion. Many millions of dollars and hundreds of thousands
of hours are spent each year to file tax returns. This is an often overlooked
cost of our tax collection system.
We
believe companies who engage in irresponsible or fraudulent business practices
should not be rewarded with tax refunds, as a result of their practices. For most
farmers, and small business owners, their farms ands businesses are their largest
retirement assets. New tax policies are required to assure that our current generation
of family farmers and business owners area allowed to retire with dignity and
that their productive resources are transferred to a new generation of family
farmers and small business owners.
We
support user taxes with revenue used for the intended program. We support oversight/review
of programs to eliminate spending on programs that have lost their value. Programs,
once authorized, should receive adequate appropriations. We oppose unfunded mandates
and using government funding to force compliance of a program that is not the
result of a legislative support.
In
all our dealings with Government, and in our own fiscal policy actions, Grangers
must follow and advocate for sound principles of fiscal policy.
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Personal
Income Tax
1. The National Grange supports a tax system with the objective of developing
a simpler and fairer federal income tax, written in precise, plain, and understandable
language. We further support simplifying the language that is used in the government's
instruction pamphlets for filing individual income taxes.
2.
The National Grange favors a restoration of the full income averaging procedure.
We especially favor continuing five and 10-year averaging of personal pension
funds for income tax purposes.
3.
The National Grange favors continuing income indexing.
4.
The National Grange supports reinstating the income tax deductions for two-wage
earner families by removing the "Marriage Penalty" from the U.S. tax code.
5.
The National Grange supports deducting state sales tax from federal income tax
returns.
6. The National Grange supports the deduction of 100 percent of charitable contributions
for all taxpayers, both itemizers and non-itemizers.
7.
The National Grange supports equalizing the mileage rates for volunteer services
and medical transportation with mileage rates permitted for businesses for tax
purposes.
8.
The National Grange favors income tax credits for those families who care for
their elderly or handicapped relatives who otherwise would become residents of
a nursing home. We urge the Congress to enact legislation to allow a line item
tax deduction, regardless of tax form used, for Long Term Care Insurance premiums
and that the benefits paid on all Long Term Care Policies shall not be considered
taxable income.
9.
The National Grange supports increasing the child care deduction that is allowed
on federal income tax for working families to a maximum of $4,000 per year.
10.
The National Grange supports legislation that would prohibit any state from imposing
an income tax on the pension income of any individual who is not a resident of
that state.
11.
The National Grange strongly opposes any changes that would eliminate or reduce
the tax deduction allowed on real estate mortgages. We further supports legislation
allowing first time homebuyers to withdraw money from their IRA accounts, without
penalty, to cover their down payment and closing costs.
12.
The National Grange supports legislation to allow voluntary contributions of $1.00
to be solicited on all federal income tax forms to fund our national parks. The
Grange supports permitting an individual to designate $1.00 on his/her federal
income tax return for the USA Olympic Program.
13.
The National Grange opposes any reduction in the earned income tax credit.
14.
The National Grange favors legislation, which would provide a 100% federal income
tax credit to law enforcement officers on purchasing their own bulletproof vests.
15.
The National Grange supports legislation that allows a total of $500.00 in income
tax credits for political contributions.
16. The National Grange supports legislation allowing federal annuitants, members
and retirees of the uniform services and legislative branch employees to pay their
share of health insurance premiums with pre-tax earnings. The National Grange
supports a 100% federal income tax deduction for all medical insurance premiums.
We further recommend that any year-end balance of pre-tax payroll deductions to
pay medical expenses be rolled into the next year's account or refunded to the
employee as taxable income.
17. The National Grange opposes the collection of delinquent income tax on a commission
basis.
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Business,
Investment, Capital Gains, And Inheritance Taxation
1.
The National Grange supports legislation to permit farmers and others whose incomes
are impacted by natural disasters and whose businesses are capital intensive to
choose the method of depreciation that is most suitable to the uncertainties of
their businesses. We will seek changes in the depreciation schedules on agricultural
capital assets to more accurately reflect the useful life of an asset. In particular,
we support a depreciation schedule of 15 years for single purpose farm structures
(confinement houses, etc.). Other real property should have a depreciable usable
life of no more than 25 years. We further urge Congress and the IRS to revise
codes to eliminate the reporting of government funded environmental and conservation
mandated cost-share monies as income to the recipients.
2.
The National Grange supports the reinstatement of the Investment Tax Credit or
accelerated depreciation with a $100,000 value eligibility limit.
3.
The National Grange urges Congress to reinstate the preferential treatment for
capital gains income. We support the abolishment of the capital gains tax. Until
then, we support the concept of indexing the basic value of an asset, so that
only the real gain and not the inflation value is subject to the capital gains
tax. We further support legislation to change the Internal Revenue Code to exclude
capital gains up to $500,000 from sale of agricultural lands as well as legislation
allowing farmers to invest any un-excluded capital gains from the sale of real
and personal property into tax-deferred accounts, such as IRAs.
4.
The National Grange opposes passage of any legislation that will increase taxation
on employee benefits and/or the cash value buildup of life insurance or annuities.
5. The National Grange strongly opposes the IRS's policy of holding an employee
liable for unremitted taxes, if the employer properly withheld those taxes from
the employee's pay.
6.
We reaffirm our longstanding opposition to "tax-loss farming" or the use of income
tax write-offs from farming to reduce the amount of taxes that are owed on the
earnings of non-farm businesses or professions.
7.
We oppose any legislation that denies the installment or seller-financed method
of reporting sales of property or which permits the imputed interest rate to go
above seven percent.
8.
The National Grange opposes the enactment of any federal tax on securities transactions.
9. The National Grange supports the uniform application of all timber depletion
allowances in the tax code to all timberland owners regardless of the size of
their timberland holdings.
10.
The National Grange supports legislation that would abolish the federal estate
tax, especially for small business and agriculture. Until the inheritance tax
is gone we want the tax basis for inherited property to be at the current use
value and not the prospective development value.
11. The National Grange supports legislation that would provide federal tax credits
or tax deductions to growers or grower co-operatives who build or own ethanol
production facilities.
12.
The National Grange opposes any legislation that allows any employer to borrow
from the employee's pension fund. The National Grange supports legislation that
would place employees or former employees who had invested in their employers
stock as a part of their retirement plan to be placed ahead of payments to other
creditors. The National Grange also supports action by The Attorney General or
designee thereof to actively prosecute corporate or cooperative executives and
others suspected of illegal actions in reporting of corporate results which cause
a corporation to go into bankruptcy, and any illegal gains that may have resulted
be confiscated and returned to the assets of the corporation, along with fines
of imprisonment, as appropriate.
13.
The National Grange supports the passage of legislation to amend the Internal
Revenue Code to exclude from gross income: (1) 100 percent of the gain from the
sale or exchange of qualified farm property to a first-time farmer who certifies
that the use of such property shall be as a farm for farming purposes for not
less than 10 years after such sale or exchange; (2) 50 percent of the gain from
the sale or exchange of qualified farm property to any other person who certifies
that the use of such property shall be as a farm for farming purposes for not
less than 10 years after such sale or exchange; (3) 25 percent of the gain from
the sale or exchange of qualified farm property to any other person for any other
use. Limits the amount of any of the above exclusions with respect to any taxable
year to $500,000 on a joint return.
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Sales,
Excise Taxes, and Internet
1.
The National Grange opposes the enactment of any national sales tax or any form
of value added tax.
2.
The National Grange opposes legislation that would require mail order houses or
Internet retailers to collect state sales taxes on mail order or Internet purchases.
We further oppose a federal sales or use tax being imposed on mail order or Internet
sales.
3.
The National Grange opposes any additional taxation of tobacco products.
4.
The National Grange opposes any Federal Government imposed charges or taxes on
e-mail or the use of the Internet.
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Taxes
- General
1.
We oppose legislation, which would alter the present tax treatment of agricultural
cooperatives.
2.
The National Grange opposes any tax being imposed on water that is drawn from
private wells, lakes, and irrigation ponds. We encourage Congress to keep all
restrictions on private wells, lakes, and irrigation ponds to a minimum.
3.
The National Grange urges Congress to maintain tax policies that will preserve
the ability of this nation to find and produce domestic oil and gas resources.
We oppose any increase in the oil import fee or the domestic crude oil fee.
4.
We oppose any federal legislation that would limit the individual state's right
to levy severance taxes on minerals and coal.
5.
The National Grange seeks permanent tax exemption for income that is raised by
non-profit organizations such as the Grange. Until then, we oppose IRS guidelines
that classify corporate sponsorships as advertising revenue, and thus, unrelated
business income for non-profit organizations. We further support legislation to
raise the minimum gross income filing requirements for non-profit organizations.
6. The National Grange supports federal legislation requiring that tax laws that
are to be effective for that calendar year be enacted no later than July 1st and
that any tax laws that are to be enacted after that date must be effective on
January 1st of the following year or at such later date as is specified by such
law. We flatly oppose all retroactive tax increases.
7.
We support a further strengthening of the "Taxpayers' Bill of Rights". We support
placing the burden of proof on the IRS - not the taxpayer - under due process
of law and providing a course of action in which the taxpayer could defend himself
and recover his costs and attorney fees should the IRS fail to prove its case.
We support giving the taxpayer the right to record all interviews with IRS people
and to set a reasonable time and place for same. We support prohibiting the IRS
from sending out bills that are in excess of taxes that are owed, except that
interest and penalties may be included.
8. The National Grange opposes all efforts to further limit the rights of local
governments to use tax-exempt municipal financing.
9.
The National Grange supports requiring a two-thirds vote of each house of Congress
to increase taxes.
10.
The National Grange supports legislation that will close the tax loopholes that
allow foreign companies doing business in the United States to avoid paying United
States' income tax. We further demand that foreign investors pay U. S. federal
taxes on their investments on the same basis as U. S. citizens.
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