Hagel, Dorgan Back
Ag Gains Tax Relief

OMAHA, Neb. —(AP)— Sen. Chuck Hagel, R-Neb., joined North Dakota Democrat Byron Dorgan Tuesday in offering legislation in the U.S. Senate to include the family farmer in capital gains tax breaks given non-rural homeowners.

Hagel said Congress gave most Americans serious capital gains tax relief in 1997 but neglected the family farmer. He said the bill he and Dorgan offered would correct that omission in the Taxpayer Relief Act of 1997.

Hagel explained that most family farmers put whatever profit they earn from their work back into the land, not into their homes.

``As a result, the $500,000 exclusion for the sale of a principle residence does not provide the same level of relief to the family farmer as it does for the vast majority of others,'' Hagel said.

The Omaha Republican said that when farmers were forced to sell their farms due to economic downturns, not only were they forced out of business but the federal government took a large portion of the sale profits for taxes.

Hagel said farmers also could use estate tax relief, ``and I will continue to work for its elimination.''