August 4, 2000

House, Senate pass
death tax elimination bill

Repeal of the federal estate tax in the U.S. Senate is an important step, despite the threat of a presidential veto, said Donald Patman, president of the Texas Farm Bureau.

The bill, which passed the House last month, totally eliminates death taxes by 2010.

At that time, $5.6 million of assets per family would retain stepped-up basis, which would protect families from high capital gains taxes if farms and ranches were sold.

Patman said the overwhelming Senate and House votes indicates widespread support nationwide for what Farm Bureau has termed the “death tax.”

“Certainly, I would call on President Clinton to sign the bill,” the TFB president said. “It would be the right thing to do for farmers, ranchers and small businesses all over America.”

AFBF President Bob Stallman also urged President Clinton to sign the bill. Stallman called administration veto threats “unfortunate and unwise.”

He said rural communities have felt the pinch as the economic viability of farms is put in jeopardy as growers struggle with low commodity prices and high regulatory costs, as well as large tax burdens.

“When farms and ranches have to be sold off to pay death taxes, the rural communities and businesses they support also are hurt,” Stallman said.
“Farmland near urban areas is often lost forever to development when farm families are forced to sell key aspects of their operation to pay the government.”

Current estate tax rates vary from 37 to 55 percent. The legislation reduces all estate tax rates by about 15 percent over 10 years, until the tax is completely eliminated. The lowest rate cut would be from 37 percent to 18 percent, immediately.

“Individuals, family partnerships and family corporations own 99 percent of the farms in the country,” Stallman said. “Farm Bureau is very pleased the Senate has completed action to effectively kill the death tax and help ensure U.S. farms remain in family hands.”

Hope is not lost even if the bill is vetoed by President Clinton, TFB President Patman said.

“We will try to override the veto, but in any case, there will be a new president next year,” Patman said. “The country is ready to get rid of this unpopular and unfair tax.”