Berry Votes to Kill the Death Tax  

“Once again family farmers and small business owners can grow their business and pass it on to their survivors without fear of unfair taxes destroying the nest-egg they have worked so hard to create,” Berry said. “Now families can make long-term, financial plans and know that the business they worked so hard to build won’t have to be sold to pay an undue tax.”

According to the Farm Bureau, there are more than two million farms in America and individuals, family partnerships or family corporations own 99 percent of them. Family farms produce about 94 percent of U.S. agricultural products sold. Death taxes destroy family-owned farms and ranches when the tax, which can be as high as 47 percent, forces farmers and ranchers to sell land, buildings or equipment needed to operate their business.

Farm and ranch estates face heavier, potentially more disruptive death tax burdens than other estates. Roughly twice the number of farm estates paid federal death taxes in the late 1990’s compared to other estates. Moreover, the average farm death tax is larger than the tax paid by most other estates.

“Much of Rural America’s strength is derived from the principles and values learned through hard work and passed down from one generation to the next. The ability to pass on a family’s business that embodies those values is just as important. I am proud to have eliminated this unfair tax and I am hopeful and optimistic the Senate will act soon on behalf of Rural America and America’s farm family.”

H.R. 8 is a bipartisan repeal introduced by Reps. Kenny Hulshof (R-MO) and Robert Cramer (D-AL). The legislation strikes the sunset clause in current law so the death tax repeal scheduled for 2010 is permanent. Without Congressional action, the tax would be reinstated in 2011.