Farm Bureau: Death Tax Must Die

WASHINGTON, D.C., February 24, 1999 --Legislation to end the federal death tax would help farmers and ranchers pass their operations on to family members who then wouldn't be forced to sell portions of their farms just to pay the resulting tax burden, according to the American Farm Bureau Federation.

"The federal estate tax-the death tax-is one of the most punitive taxes the government collects," said AFBF President Dean Kleckner. "Farmers and ranchers spend countless hours and dollars preparing for their deaths. They meet with accountants, lawyers, and more accountants and lawyers in attempts to protect their farms from government tax collectors. These activities are time consuming, expensive and erode the efficiency of American agriculture."

Kleckner, an Iowa hog, corn and soybean farmer, praised Reps. Jennifer Dunn (R-Wash.) and John Tanner (D-Tenn.) for their introduction of a bill (H.R. 8) that would phase out the death tax. Kleckner called the legislation one of agriculture's highest priorities of this Congress.

"When this bill becomes law, farmers and ranchers can feel secure knowing their children will have the option of continuing the family business," Kleckner said. "Too often, the process of paying the death tax, which can be as high as 55 percent of the value of a farm or ranch estate, ends with families having to parcel off pieces of their operations following the death of a loved one. That's not productive and it's certainly counter to the American tradition of family-owned farms and ranches."

Because the Dunn-Tanner bill would begin to ratchet the death tax rate down immediately, farmers and ranchers of all scales and proportions would benefit. That fact makes this proposed law favorable to all of America's agricultural producers.

"With the death tax rate declining 5 percent each year under this bill, the highest tax rate will be zero in 11 years," Kleckner said. "Passage of this legislation will protect the viability of thousands of family farms and allow farmers to put money back into their operations, not into the pockets of lawyers, accountants and government coffers. The time for the death tax to die is now."

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This page was last modified Thu Feb 25, 1999 at 12:00 am