The American Farm Bureau Federation (AFBF) has endorsed bipartisan legislation in the House and Senate to repeal the federal estate tax. AFBF President Zippy Duvall said the bills are needed because farm and ranch families continue to face challenges to passing their family businesses to the next generation.
The AFBF-endorsed Death Tax Repeal Act of 2017 was introduced this week in the House by Rep. Kristi Noem (R-S.D.) and Rep. Sanford Bishop (D-Ga.). Sen. John Thune (R-S.D.) introduced a companion bill in the Senate.
“Farmers and ranchers face a number of factors that are unpredictable and beyond their control, from changing weather to fluctuating markets,” Duvall said. “These family-run businesses need a tax code that encourages investment, rather than one that punishes their success. We believe that repeal of the estate tax offers the best solution to protect farms, ranches and all family-owned businesses from the estate tax.”
AFBF Senior Director of Congressional Relations Pat Wolff says this is a critical time for passing the legislation before Congress starts on comprehensive tax reform in April.
Wolff says that while the estate tax exemption level of $5 million is beneficial, it does not help all farmers and ranchers.
“Farmers and ranchers are worried about growing and going over that level,” Wolff said to AFBF’s Newsline. “So we need to get rid of the tax once and for all. We don’t need it hanging over people’s heads and we don’t need farmers having to pay their attorneys to write them estate tax plans just in case.”
We agree. We believe farmers and ranchers should be able to pass their legacy on to the following generations without being taxed. They paid for it and shouldn’t be taxed on it upon their death, or have to spend huge sums of money on lawyers for ways to figure out how to pass it on without being taxed. Although my family would not be affected, I believe the death tax certainly needs repealing. It’s not fair.
Fantastic!!!Praying they pass!!!!
Fabulous! Praying it passes!!!!!
It would make so much more sense to exempt family farms that are not being sold from the estate tax! Why throw away the baby with the bathwater?
Instead, the GOP is planning to eliminate the cost basis bump up that heirs now get. So, rather than an estate tax that only affects estates over $5.4 M, absolutely everyone who inherits property will be hurt. And the worst will be felt by middle income families.