U.S. Senator Ken Salazar

Member: Finance, Agriculture, Energy, Ethics and Aging Committees

 

2300 15th Street, Suite 450 Denver, CO 80202 | 702 Hart Senate Building, Washington, D.C. 20510

 

 

For Immediate Release

Wednesday , March 12, 2008

CONTACT:Stephanie Valencia – 202-494-8790
Cody Wertz – 303-350-0032

Sen. Salazar Pushes Serious Estate Tax Reform in Budget Resolution

 

WASHINGTON, DC – In an effort to provide estate tax relief to family farmers and ranchers and small business owners, United States Senator Ken Salazar introduced amendment number 4196 to the Senate Budget resolution today to create a deficit-neutral reserve fund dedicated to estate tax relief. This reserve fund will provide sufficient funds to accommodate a proposal to raise the estate tax exemption to $5 million (indexed for inflation) and lower the tax rate to 35 percent, but would allow Congress sufficient flexibility to continue to examine how to move forward with permanent, comprehensive, and fiscally responsible estate tax reform.

Senator Salazar also announced his support today for an amendment offered by Senator Max Baucus (D-MT) that, among other things, prevents an increase in the estate tax by permanently extending 2009 estate tax law.

“The estate tax law changes every year until 2011, making the exemption go down and the tax rate shoot up – this wreaks havoc on those trying to plan their family’s future,” said Senator Salazar. “Working in concert with Senator Baucus' amendment, my proposal to create a deficit-neutral reserve fund will help pave the way for permanent estate tax reform that will help our family farmers, ranchers and small businesses.”

Earlier today, Senator Salazar attended a hearing of the Senate Finance Committee on estate tax reform. Regarding that hearing, Senator Salazar said, “There are many options available to us as we consider estate tax reform and we should continue to work our way through the process to identify the most appropriate way to move forward on a bipartisan basis.”

This morning’s hearing was the second estate tax hearing the Finance Committee has held on the issue. A third hearing will be held in early April.

Senator Salazar has long been working to provide estate tax relief to family farmers and ranchers and small businesses. Last year, Senator Salazar and Senator Pat Roberts (R-KS) introduced the Family Farm and Ranch Act of 2007, which grants an estate tax exemption for family farms and ranches that stay in the family and continue operations after the original estate-holder passes away.

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