(Mason, Texas)—It looks like the time is ripe to begin repeal of the estate tax, said Mason County Farm Bureau President, Tim Dockal.
More than half of the House of Representatives are cosponsoring Rep. Kevin Brady’s (R-Texas) Death Tax Repeal Act, HR 2429, which would repeal estate taxes and maintain stepped-up basis. The estate tax burden falls heavily on local farmers and ranchers because it takes more capital assets, such as land and equipment, to generate the same level of income as other types of businesses. Although permanent law was enacted in 2012 that provided significant estate tax relief, repeal is the best solution to protect all farms and ranches from the estate taxes.
If Congress fails to permanently repeal the estate tax, surviving family members could be forced to sell off parts of the farms and ranches, jeopardizing their livelihoods.
As land value increases, the chances of surviving family members having to sell substantial acreage to pay estate taxes increases with it. This devastates not only families, but also rural communities and businesses that agriculture supports.