The good people of Iowa need the FairTax. This is especially true for our farmers.

In addition to eliminating income taxes, the FairTax eliminates both capital gains and estate and gift taxes. The FairTax does not penalize capital-intensive investments such as equipment and tools, it allows farms to be sold without imposition of a capital gains tax on increases in market value (including phantom capital gains caused only by inflation); and it does not penalize transfers to succeeding generations. The FairTax ensures that no tax would be imposed on capital purchases, sales, or ownership transfers.

Under the FairTax, there are no more inventory requirements, no complex rules governing employee benefits and retirement plans, no more depreciation schedules and depreciation recapture, no more capital gains tax, and no more alternative minimum tax. In place of having to comply with the complexities of the IRS system’s income and payroll taxes, there is one national retail sales tax imposed only on new goods and services purchased for personal consumption.

U.S. farmers and ranchers know the value of saving and investing. The FairTax rewards efforts to save by never again taxing income from savings. The FairTax improves the balance of trade for agricultural products because it does not tax agricultural products that move into exports.

Here's more information on how the FairTax will help: