American Agri-Women

House of Representatives Passes Estate Tax Bill

On December 3, by a vote of 225-200, the House of Representatives passed HR 4154, which makes permanent the 2009 estate tax rates and exemption threshold.

The bill sets a 45 percent maximum tax rate on estates valued over $3.5 million for individuals and $7 million for married couples. The estate tax is currently set to be repealed for one year in 2010, returning in 2011 with a tax rate of 55 percent and an exemption lowered to $1 million.

AAW President Chris Wilson said, "This bill would permanently extend the excessively high tax rate of 45 percent with an un-indexed exemption amount of $3.5 million currently in effect for 2009. At the 45 percent rate, nearly half of the value of farms, ranches and small businesses would be taxed by the federal government."

The estate tax punishes individuals at their death and, in effect, is a double tax on assets which were already taxed when earned. It disproportionally affects the assets of family-owned small businesses and ag producers which are transferred at the time of death.

This bill does not set a reasonable rate, does not provide an appropriate exemption amount, and is not indexed for inflation. More and more agriculture producers are going to face this tax in the future. In lieu of total elimination, AAW supports an individual exemption of $5 million to $10 million, indexed for inflation.

AAW is the national coalition of farm, ranch and agribusiness women.  For more information, contact President Chris Wilson at president@americanagriwomen.org, 785-537-6171.