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Ag Groups Push Congress to Reform Estate Tax in Lame Duck Session

November 5, 2010


Ag Groups Push Congress to Reform Estate Tax in Lame Duck Session

NMPF and other agriculture groups are campaigning for estate tax reform to be passed during the Lame Duck session.

If estate taxes are allowed to be reinstated at the beginning of 2011 with only a $1 million exemption and top rate of 55%, the negative impact on the dairy industry will be significant. NMPF supports permanently raising the exemption to no less than $5 million per person, and reducing the top rate to no more than 35%. It is also imperative that the exemption be indexed to inflation, provide for spousal transfers, and include the stepped-up basis.

Family farmers and ranchers are not only the caretakers of our nation’s rural lands but also small businesses. The 2011 change to the estate tax law does a disservice to agriculture because we are a land-based, capital-intensive industry with few options for paying estate taxes when they come due. The current state of our economy, coupled with the uncertain nature of estate tax liabilities, makes it difficult for family-owned farm and ranches to make sound business decisions.

Congress is expected to address estate tax reform during its lame duck session later this November. Interested parties can contact their members of Congress on this issue by going to NMPF’s Dairy GREAT section.