James A. Leach: “I would like to offer a perspective from my State of Iowa on the important work of the House today. It is my belief that…”

“I would like to offer a perspective from my State of Iowa on the important work of the House today. It is my belief that few tax changes ever contemplated by Congress fit the rural economy as well as this one. Of particular import is the $500-per-child tax credit; the Archer capital gains cut, 20-year deferred payment contracts for family farms and small businesses for estates; 100 percent deductibility for self-employed individuals for health care cost; 3-year income averaging for farmers; and an increase in the inheritance exemption from $600,000 to $1 million and to $1.3 million for closely-held businesses and family farms, which is a potential total inheritance deduction of $2.6 million if both spouses are able to participate. The effect of all of this is that for the first time in the last half century, many Iowa farmers will be allowed to transfer their farms to their children virtually inheritance tax free. On the education front, with the exception of the revocation of tax-exempt status for TIAA-CREF, this legislation is a strong step forward for the education community. For the first time in over 10 years, students will be able to deduct a major part of interest accumulated on their student loans. In addition, the tax exemption for employer-provided undergraduate education assistance is extended for 3 years, and a HOPE tax credit is created to assist students and their families with out-of-pocket expenses associated with college attendance.”