Created: 8/06/10 (Fri) | Topic: Issues
Tell Congress your estate tax stories
“I don’t know who gets the first bite of the excess over $1 million, but there will not be enough money left to keep the farm intact. Even if the next generation could hold onto a small piece of the farm after estate taxes, the reduction in economy of scale would make the farm unprofitable.”– Clark Granger, who grows Christmas trees on 50 acres in Maine.
Granger, like many farmers, fears the estate tax will be the end of his operation. If Congress does not act, beginning next year, the estate tax exemption will be $1 million with a top rate of 55 percent.
The Senate adjourned until Sept. 13 without addressing the estate tax issue.
If Congress fails to act before Jan. 1, estate taxes will be reinstated with a $1 million per person exemption and 55 percent top rate. 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 10 years. Stepped up basis is included in their proposal.
Farmers and ranchers can share their estate tax stories through Farm Bureau’s FBACT website.