Farm Bureau Urges House to Override Death Tax Veto

WASHINGTON, D.C., September 7, 2000--The House must protect the future of America’s family farms and override President Clinton’s veto of the bill to repeal the death tax, according to the American Farm Bureau Federation.

"The House vote to override Clinton’s veto carries a significant impact that will be realized far beyond our current generation of farmers and ranchers," said AFBF President Bob Stallman. "The repeal of the death tax will allow the sons and daughters of today’s growers to carry on the family tradition of producing quality food for the United States and the world."

With a House override, all estate tax rates would be reduced by about 15 percent over 10 years, until the tax is completely eliminated in 2010. The lowest rate cut would be from 37 percent to 18 percent immediately. When the tax is removed, $5.6 million of assets per family would retain "stepped-up basis," protecting families from high capital gains taxes if farms or ranches are sold.

"Over 90 percent of U.S. farms are owned by individuals, family partnerships or family corporations who continually improve their land and buildings with hopes of transferring a successful operation to their sons and daughters," Stallman said. "But when the government comes calling for the cold cash to pay off death taxes, family members are frequently forced to sell the farm, piece by piece."

Estate planning is often too costly for farmers facing a third straight year of low commodity prices and heavy regulatory burdens.

"The death tax has got to go, or else our strong tradition of family farms will die," Stallman said. "The only option is for the House to override the President’s veto and preserve the work Congress has done to ensure that family farmers will have a legacy to pass on to their children."

This page was last modified Thu Sep 07, 2000 at 01:52 pm