By Wayne Nelson,
President, Communicating for Agriculture
On behalf of our national
membership of farmer, ranchers and rural small business people, CA is
pleased to offer its support of H.R. 8, "The Death Tax Elimination Act",
introduced by Representatives Dunn, Tanner and more than 75 additional
co-sponsors in the House of Representatives.
Estate taxes have been a counter productive tax that has been harmful
to the American economy, but it has been especially harmful and
counterproductive to the most vital sectors of the rural economy
&endash; small business and family farm agriculture.
When estate taxes kick-in they quickly can ratchet up to 55 percent.
There are numerous cases when the heirs of a family farm or ranch is
forced to sell all or major portions of their land to pay federal estate
taxes or state inheritance taxes. In other cases, one or more members of
the family who want to continue the business must take on costly,
long-term debt to pay taxes. All too often the effect is to force
established, family-owned business operations into a weakened financial
status. Or to be sold off. This isn't right.
It is important to recognize how important continuity of established
business is to rural communities. Most rural communities don't have the
high level of new business development that many of our metropolitan
centers are now enjoying, even though CA believes rural America is a prime
opportunity for economic development. Family owned small businesses and
farms have been the backbone of rural communities. Their continued success
provides stability to these towns, their schools, public institutions, and
interdependent businesses. Estate taxes are an unnecessary and harmful
threat to the stability of these communities.
Last year Congress made a positive first step in estate tax reform when
it passed legislation that would phase-in a higher unified tax credit, but
for the sake and stability of rural small business it would be best for
the Death Tax to Die. H.R. 8 takes a prudent approach to doing so, by
phasing out the tax over a ten-year period. We urge Congress to pass it.