National Cattlemen’s Beef Association Director of Legislative Affairs Kent Bacus (back-us) said the estate tax is the number one priority for NCBA. Speaking to attendees of the 2012 Cattle Industry Summer Conference – Bacus explained that the issue rises to the top because of the burden it places on families that hope to pass their business on to the next generation. According to Bacus – the estate tax is a prime example of bad tax policy. He says Congress should repeal it. In order to sustain family businesses – Bacus said the future must contain a level of certainty. The next generation – he said – can’t possibly afford to take over the family business if they are taxed to death.
For cattlemen seeking permanent relief from the estate tax – Bacus had some good news. Texas Representative Kevin Brady has 218 cosponsors on his Death Tax Repeal Permanency Act. The legislation would essentially provide full and permanent relief from the tax. Companion legislation has been introduced by South Dakota’s John Thune in the Senate. The measure has 37 co-sponsors.
But Bacus shared some bad news too. He said the Senate recently took action on a tax package that did not address the estate tax. Instead – the package would leave small business owners and ranchers vulnerable to a reversion to pre-2001 levels of a 55-percent tax on estates worth one-million dollars or more. Bacus said most farmers and ranchers would reach the one-million dollar threshold on land values alone. According to Bacus – we must find permanent estate tax relief or risk taking land out of production agriculture. He says that would threaten our ability to provide food for consumers at home and abroad.
Source: NAFB News service