South Dakota Senator John Thune has introduced the Death Tax Repeal Permanency Act, S. 2242, to abolish the federal estate tax, something agriculture has been working toward for decades. National Cattlemen’s Beef Association President J.D. Alexander calls the tax – an unnecessary tax on small businesses and farm and ranch families across the country. The Senate bill is identical to H.R. 1259 introduced in the House by Representatives Kevin Brady of Texas.

According to Alexander, the death tax is detrimental to the farmers and ranchers who live off the land and run asset-rich, cash poor family-owned small businesses. He says – our priority is to keep families in agriculture and this tax works against that goal.

The appraised value of rural land is extremely inflated when compared to its agricultural value. Many cattle producers are forced to spend an enormous amount of money on attorneys or sell off land or parts of the operation to pay off tax liabilities. This takes more open space out of agriculture and usually puts it into the hands of urban developers.

Courtesy: NAFB News