Revenue Reconciliation Act of 1993: Tax Provisions of Significance to Farmers andRural America

摘要

The Revenue Reconciliation Act of 1993 (RRA 1993) contains numerous taxprovisions that will affect farmers and rural Americans. With the exception of the transportation fuels tax, the tax increases are aimed at higher-income taxpayers and corporations. As such, most farmers and rural Americans will not be directly affected by most of the tax increases. In addition, onfarm use of transportation fuels is exempt from the Federal excise tax, further limiting the effect of tax increases on farmers. RRA 1993 also contains several provisions that should help small businesses and low-income working Americans. Specifically, RRA 1993 extends and expands the self-employment health insurance deduction, simplifies and expands the earned income tax credit for low-income workers, and provides incentives for empowerment zones and enterprise communities.