Death Tax Back in Congressional Crosshairs
With your Southeast Regional Ag News, I am Haylie Shipp. This is the Ag Information Network.
Senator John Thune (R-SD) and 40 colleagues have now reintroduced legislation to permanently repeal the federal estate tax. The “Death Tax Repeal Act” would end a tax that hits family-run farms, ranches, and businesses hard after the owner’s death.
According to Thune, “Agriculture is the backbone of the rural American economy.” He adds that, “Family-owned farms and ranches often bear the brunt of this tax, which makes it difficult and costly to pass these businesses down to future generations.”
Todd Wilkinson, president of the National Cattlemen’s Beef Association, says no cattle producers should ever be forced to sell their family’s farm or ranch to pay a tax bill due to the death of a family member. “Repealing the death tax is a commonsense way to keep the farm or ranch in the family,” Wilkinson says, adding that “as a land-based, capital-intensive industry, most cattle families are asset rich and cash poor, with few options to pay tax liabilities.”
As of 2023, the federal estate tax ranges from rates of 18% to 40% and generally only applies to assets over $12.92 million.