Estate Tax Targets Family Farms For Death

If the U.S. Congress and President Obama fail to act, the federal government will begin taking more than half the value of family farm estates exceeding $1 million beginning next year.

Up to 24% of America’s farm and ranch families could be forced to hand over a large chunk of their heritage to the Internal Revenue Service when a family member dies. This would economically devastate rural communities.

Billionaire investors Warren Buffett and George Soros are calling on Congress to increase the estate tax as lawmakers near a decision on tax policies that expire Dec. 31.

In a joint statement, Buffett, Soros and more than 20 other wealthy individuals asked Congress to lower the estate tax’s per-person exemption to $2 million from $5.12 million and raise the top rate to more than 45% from 35%.

Carolyn Lee, senior director of tax policy at the National Association of Manufacturers in Washington, which supports existing levels said, “We think that family-held and multi-generational businesses are important. It’s part of the American way of life.”

With all due respect to billionaire investors, we agree with NAM — Family-held farms and multi-generational businesses are critical to the success of any nation and our industry is a prime example.