Farm Bill cloture

I just wanted to provide a quick update to our post last week about the Farm Bill (H.R. 2419). As you may know, this bill carries a number of tax provisions. Included among these is Section 12507, which provides that collectibles, such as artwork and coins, are ineligible for exchange treatment under Section 1031 (what this has to do with farming is beyond me). Under Section 12504, it also amends the standard definition of “like-kind” for certain agricultural properties.

While the House passed the bill back in July, the Senate has not moved on the bill. President Bush has threatened a veto of the bill due to many of the provisions. Before recessing, the Senate, by a vote of 55-42, failed to invoke cloture (which in normal man's speak means to end debate on the issue) on the bill. What does this mean? Failure to invoke cloture is essentially the same effect as killing the bill.