Statement of CA in Support of "The Death Tax Elimination Act"

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.   

  

  

Baby 2

E-2150


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