Organizations from the commodity, dairy, livestock and specialty crop industries are urging the House and Senate to provide permanent and meaningful estate tax relief before the end of the year. The American Soybean Association is one of those groups. ASA supports making the current five-million dollar per person exemption and top rate of 35-percent permanent. The group also believes it’s important that permanent estate tax law index the exemption to inflation, provide for spousal transfers and include the stepped-up basis.

If no action is taken by Congress before the end of 2012 – the exemption will drop to one-million dollars and the top tax rate above the exclusion amount will increase to 55-percent. If that happens – ag groups believe the negative impact on the industry will be significant. They say the 2013 change does a disservice to agriculture because it is a land-based, capital-intensive industry with few options for paying estate taxes when they come due. ASA is encouraging Congress to show support for the Death Tax Repeal Permanency Act introduced by Texas Congressman Kevin Brady in the House and South Dakota’s John Thune in the Senate.

Courtesy: NAFB News