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Ohio congressman proposes estate tax repeal

An Ohio Congressman has introduced legislation to repeal the federal estate tax.

Republican Bob Latta says his bill would provide relief to farmers and small business owners across the country.

Latta says in sectors that require high capital investments, such as agriculture, families often have difficulty meeting tax requirements imposed by the estate tax because their liquid assets are much lower than the value of land, property and equipment.

Latta says the top Federal estate tax rate is currently set at 40 percent with an exemption of $5.45 million in 2016 and is leveled on the assets of a person’s estate when they die. His proposal ensures that individuals are also not taxed on the increased value of an estate by retaining the stepped-up basis at death.