By Jessica Domel
Multimedia Editor

It looks like the Trump administration will attempt to bury the death tax once and for all. A new tax plan unveiled by the White House Wednesday includes the repeal of the Inheritance Tax amid other proposed tax code changes and simplifications.

“The threat of being hit by the death tax leaves small business owners and farmers in this country to waste countless hours and resources on complicated estate planning to make sure their children aren’t hit with a huge tax when they die,” Gary Cohn, director of the National Economic Council, said. “No one wants to see their children have to sell the family business to pay an unfair tax.”

Repeal of the death tax has long been a priority for Texas Farm Bureau and the American Farm Bureau Federation (AFBF).

“Farm Bureau is pleased to see President Trump’s plan will immediately take on one of our top concerns,” AFBF President Zippy Duvall said. “Eliminating the estate tax will free farmers to invest in the future of their family business rather than selling off their land and legacy when a family member dies.”

Farmers and ranchers have already benefited from congressional action to reduce the tax burden, Duvall said.

The tax plan includes a reduction in the number of tax brackets from seven to three—10 percent, 25 percent and 35 percent—and doubling of the standard deduction so a married couple won’t have to pay taxes on the first $24,000 of income they earn.

“The largest standard deduction also leads to a simplification because far fewer taxpayers will need to itemize, which means their tax form can go back to one single page,” Cohn said.

To simplify the tax code, the plan calls for a repeal of the alternative minimum tax (AMT).

“The AMT creates significant complications and burdens which require taxpayers to do their taxes twice to see which is higher,” Cohn said. “That makes no sense, and we should have one simple tax code.”

The top capital gains tax rate and dividend will be returned to 20 percent under the plan, removing the 3.8 percent tax used to fund the Affordable Care Act.

Corporate tax rates will also be reduced under the plan from 35 to 15 percent.

Most tax breaks will be removed under the new tax plan, if adopted, but two will remain.

“We’re going to eliminate most of the tax breaks that are mainly benefits to high-income individuals,” Cohn said. “Homeownership, charitable giving and retirement savings will be protected. But other tax benefits will be eliminated.”

The president is determined to move the tax plan forward as soon as possible, according to Steve Mnuchin, secretary of the treasury.

He said there will be listening sessions for Americans to weigh in on the proposal in May.

In the meantime, AFBF will continue to work with the administration and Congress to address agriculture’s needs in the tax code.

“Farmers and ranchers need a tax code that promotes the business of farming and ranching and recognizes the unique financial challenges we face,” Duvall said. “Farm Bureau welcomes a pro-business approach to tax reform, but any tax reform proposal must treat all businesses fairly. Most farm and ranch businesses don’t operate like large corporations. They are family-run businesses that depend on deductions and provisions that give them the flexibility they need to keep their businesses running in all seasons.”

Lower tax rates will help farmers and ranchers, Duvall said, but the future of other provisions important to agriculture, like immediate expensing, the deduction for interest expense, cash accounting and like-kind exchanges is still unclear.

“Farmers run their businesses in a world of uncertainty—from unpredictable markets to uncertain weather and disease outbreaks,” Duvall said. “The tax code should not add to the challenges of growing our nation’s food, fuel and fiber.”

Cohn called the White House’s tax plan the most significant reform legislation since 1986. He commented it’s one of the biggest tax cuts in American history.

The one-page outline of the tax plan provided to CNN by the White House can be found here.