Breaking News

Saturday, December 27, 2014 - 9:53pm

Farmers and ranchers fed up with new taxes

News

POSTED: Wednesday, March 6, 2013 - 11:03pm

UPDATED: Thursday, March 7, 2013 - 1:55pm

President Obama's Health Care Bill which includes increasing the Medicare Tax will affect many farmers.

One East Texas farmer tells KETK, it's nearly impossible right now for new farmers and ranchers to get started.    

"Our government just seem like they never stop trying to nickel and dime us on new taxes," says Mike Dominy, Owner of Dominy Farms.

Fourth generation farm owner of Dominy Farms, Mike Dominy tells KETK, the cost of operating a farm, and the thought of continuous tax hikes is ridiculous.

"We are basically a slave to the government a third of the year," says Mike Dominy, Owner of Dominy Farms.

The American Farm Bureau Federation reports, they support a re-peal of the 3.8 percent Medicare Contribution Tax which is tax applied to "unearned" income such as capital gains.

"All the income the average family makes in a year, they spend 29% of all the money they make in a year just to pay their taxes."

KETK tried to contact The Voice of Agriculture to find out exactly how the health care tax hike will affect farmers and ranchers, but they were not available to comment.

They say new taxes will affect farmers and ranchers because the industry is a capital-intensive business which requires a lot of money and resources to produce. When a farm or ranch is sold to fund retirement it's considered "retirement tax".

Reports say, the Medicare Tax will affect beginning farmers too, by adding tax on top of capital gains.

"It cost so much to have a farm or ranch to have all the cattle the land and the equipment that it's basically impossible to start up a new one unless it was inherited," says Mike Dominy, Owner of Dominy Farms.

Comments News Comments

Post new Comment