Created: 9/01/10 (Wed) | Topic:
NDFB Action Alert posted encouraging you to contact Sen. Conrad on estate taxes
The Senate adjourned until September 13 without addressing the estate tax issue. American Farm Bureau is supporting a proposal offered by Sens. Blanche Lincoln (D-Ark) and Jon Kyl (R-Ariz.) to phase-in a $5 million exemption and 35 percent tax rate over ten years. Stepped up basis is included in their proposal.
If the Senate fails to act on estate tax legislation before Jan. 1, estate taxes will be reinstated with a $1 million per person exemption and 55 percent top rate.
The Lincoln-Kyl amendment is included in H.R. 5297, the Small Business Jobs Act of 2010. North Dakota Farm Bureau members are urged to contact Senator Conrad, asking him to support the amendment. Sen. Conrad is identified as a possible supporter, since he supported an amendment in 2008 for an amendment to provide a $3.5 million exemption and a 35 percent rate that was paid for with a surcharge on estates over $100 million.
The House has previously stated its position with passage of HR 4154 to provide a permanent $3.5 million exemption (not indexed), a top 45 percent rate and stepped up basis.
North Dakota Farm Bureau has long been a staunch supporter of total repeal of the estate tax. The Senate rejected a motion, 39-59, to instruct the Finance Committee to amend the American Jobs and Closing Tax Loopholes Act (H.R. 4213) to include repeal of the estate tax. Since that failed, AFBF is working toward the $5 million exemption in the Lincoln-Kyl amendment.
On another note, Sen. Diane Feinstein (D-Calif) has introduced a bill that would defer estate taxes with a “recapture tax” provision. It only applies to farm and ranch land. There does not appear to be support for a bill that only addresses agriculture property and not all businesses.
To send a note to Conrad supporting the Lincoln-Kyl amendement, please click here.