One of the most important issues facing family farmers and ranchers and small business owners nationwide is the future of the estate tax, more commonly referred to as the death tax. If Congress fails to act by the end of this year, the estate tax will revert to a staggering one-million dollar exemption with a 55 percent tax rate. Kent Bacus, manager of legislative affairs for the National Cattlemen’s Beef Association, says - we cannot afford for the estate tax to continue being a political football. We need permanency in the tax code.

According to Bacus, an uncertain tax code contributes to making it difficult to form a business plan, much less plan for the future of your estate. For farmers and ranchers, the death tax is one of the leading causes of the breakup of multi-generation family farms and ranches. At the time of the death, farming and ranching families are forced to sell off land, farm equipment, parts of the operation or the entire ranch to pay off tax liabilities on assets that have likely been taxed two or three times over the course of a lifetime.

Bacus explains - this outdated tax is not a tax on the wealthy. The wealthy can afford accountants and estate planners to help them evade the tax. The death tax hurts family-owned farms and ranches hardest. Bacus adds, - as Congress begins the second session of the 112th Congress, it’s time, once again, to turn our attention to providing permanent relief from the death tax.