Family Investment and Rural Savings Tax Act
The source supplies the latest action, but no lifecycle stage.
Latest action (30 Jul 1998): Read twice and referred to the Committee on Finance.
What this bill does
This bill, the Family Investment and Rural Savings Tax Act, proposes two main changes to U.S. tax law. First, it would reduce the tax rates on individual capital gains. Second, it would create new tax incentives for farmers and ranchers.
Specifically, farmers and ranchers would be allowed to establish "Farm and Ranch Risk Management Accounts," or FARRM Accounts. They could deposit up to 20 percent of their farm income into these accounts annually, taking it as an income deduction. Money withdrawn from these accounts within five years would be taxed upon withdrawal but without penalty. Additionally, the bill would permanently extend the option for farmers to average their income over several years for tax purposes, a provision that was set to expire.
This bill was introduced in the Senate in 1998 and referred to the Committee on Finance. As of the information provided, its latest action is simply "Introduced," meaning it has not advanced further in the legislative process.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
TABLE OF CONTENTS: Title I: Reduction in Individual Capital Gains Tax Rates Title II: Tax Incentives for Farmers Family Investment and Rural Savings Tax Act - Title I: Reduction in Individual Capital Gains Tax Rates - Amends the Internal Revenue Code to reduce individual capital gains tax rates. Title II: Tax Incentives for Farmers - Amends the Internal Revenue Code to permit an eligible farmer or rancher to establish a Farm and Ranch Risk Management Account (FARRM Account). States that: (1) up to 20 percent of farm-derived income may be deposited as an annual income deduction; and (2) deferred amounts shall be taxed upon withdrawal without penalty if distributed within five years. Amends the Taxpayer Relief of 1997 to permanently extend income averaging for farmers.
Timeline
30 Jul 1998
Read twice and referred to the Committee on Finance.
Common questions
- What does S. 2371 do?
- This bill, the Family Investment and Rural Savings Tax Act, proposes two main changes to U.S. tax law. First, it would reduce the tax rates on individual capital gains. Second, it would create new tax incentives for farmers and ranchers. Specifically, farmers and ranchers would be allowed to establish "Farm and Ranch Risk Management Accounts," or FARRM Accounts. They could deposit up to 20 percent of their farm income into these accounts annually, taking it as an income deduction. Money withdrawn from these accounts within five years would be taxed upon withdrawal but without penalty. Additionally, the bill would permanently extend the option for farmers to average their income over several years for tax purposes, a provision that was set to expire. This bill was introduced in the Senate in 1998 and referred to the Committee on Finance. As of the information provided, its latest action is simply "Introduced," meaning it has not advanced further in the legislative process.
- Has S. 2371 become law?
- The source does not supply a confirmed lifecycle stage for S. 2371. Check the latest action and official source below.
- Who sponsored S. 2371?
- S. 2371 was sponsored by Sen. Lott, Trent [R-MS] (R-MS), with 17 cosponsors.
- What's the latest action on S. 2371?
- Read twice and referred to the Committee on Finance. (30 Jul 1998).
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