News

Bill to repeal Estate Tax

A spokesman for House Ways and Means Committee Chairman Paul Ryan says they will vote next week on a bill to repeal the estate tax.

The IRS website defines the estate tax as a tax on your right to transfer property at your death. It consists of an accounting of everything you own or have certain interests in at the date of death.

The United States currently imposes a top rate of 40% on estates after they take an exemption of $5.43 million per individual or $10.86 million per married couple.

The American Farm Bureau Federation and other farm groups oppose the estate tax, saying it burdens farmers because agriculture involves the use of many capital assets, such as land and equipment, to generate the same amount of income that other types of businesses generate with fewer assets.

Individuals, partnerships, and family corporations own 98 percent of the nation’s 2.2 million farms and ranches. The estate tax may force surviving family members to sell land, buildings, or equipment to keep their operation going.

President Obama has said he is in favor of increasing, not repealing, the estate tax.