AFBF: Report Shows Real Harm of Estate Taxes

The American Farm Bureau Federation on Wednesday said it concurs with a Joint Economic Committee report that details the financial harm posed by estate taxes on family businesses. The JEC, a bipartisan committee composed of members from the House and Senate, issued its report, "Costs and Consequences of the Federal Estate Tax,” on Wednesday. According to the report, there are extensive costs associated with the estate tax in terms of the dissolution of family businesses, slower growth of capital stock and a loss of output and income over time. This can be particularly hard on farm families, who own 98 percent of the nation’s 2.2 million farms. AFBF supports permanent elimination of the estate tax. Until this can be accomplished, Farm Bureau supports extending the current $5 million exemption. Without congressional action, in 2013, the estate tax exemption will shrink to $1 million per person with no spousal transfer, and the top rate will increase to 55 percent, striking a blow to farmers and ranchers trying to transition from one generation to the next.