WASHINGTON, DC – When the focus of Congress turns to dealing with the national debt, one target will be the Estate Tax, also known as the so-called Death Tax. Proponents of the tax believe that wealthy Americans should not be passing on that wealth to future generations, thus adding to the economic divide in the country. Opponents however, especially in agriculture, point out that most farming and ranching operations are asset rich but cash poor with very expensive harvesting equipment and high land values but very little in liquid capital. The Death Tax Repeal Act of 2021, introduced this week in the upper chamber by Sen. John Thune (R-SD), and by Reps. Sanford Bishop (D-GA) and Jason Smith (R-MO) in the House, aims at making the repeal permanent. The National Cattlemen’s Beef Association (NCBA) explains that the estate tax disproportionately harms cattle producers because with few options to pay off tax liabilities, many farm and ranch families are forced to make tough choices at the time of death – and in worst case scenarios, must sell off land to meet their federal tax burden. Pat Wolff with the American Farm Bureau Federation (AFBF) says “Right now, the estate tax exemption level is high enough that most farmers and ranchers wouldn’t have to pay estate taxes. But there are people on Capitol Hill who want to roll back that exemption and then use that money to pay for their spending priorities.”
(SOURCE: All Ag News)