Producers Celebrate House Death Tax Repeal

In a victory for cattle producers and small business owners across the country, the House of Representatives June 18 passed legislation by a vote of 264 to 163 that calls for permanent repeal of the Death Tax.  The issue now moves to the Senate but a date for a vote was not scheduled at press time. NCBA will continue to work with Congress and the Administration to push for final, permanent repeal.

The Death Tax hits ranching families with up to 55 percent in taxes on the entire operation when a family member dies; 97 percent of American farms and ranches are owned and operated by families. 

“The Death Tax forces some families to sell an active, successful business when the owner dies,” explains NCBA President Eric Davis. “Being taxed on the inflated value of the land and equipment at this most vulnerable time, leaves them not only mourning the death of a loved one, but facing the death of their American dream.”

 In an asset-rich and cash-poor business, the appraised value of rural land is extremely inflated compared to the agricultural value over the years. Many cattle producers are forced to sell land, parts of the operation or the entire ranch to pay off tax liabilities. 

Ranching is of vital importance to the U.S. economy.  The cattle industry’s 1 million-plus individual farms and ranches represent the largest part of American agriculture.

“The National Cattlemen’s Beef Association and its affiliate members have been working diligently for more than 20 years for permanent, final repeal of the immoral Death Tax,” says Davis. “When we first began this fight, it never seemed possible, but the forces of small business have joined together and our voices are finally being heard.  Today’s vote is a huge step towards complete elimination of this onerous tax.”

“Obviously, many members of the 108th Congress are aware that the Death Tax is killing the dreams of generations of America’s farmers and ranchers,” says Chandler Keys, NCBA vice president of Government Affairs.  “This is a priority in the new Congress, as well it should be.  These families provide the backbone of our country, and we need to help them.”

In addition to mobilizing the efforts of thousands of cattle farmers and ranchers, NCBA was a founding member of the Family Business Estate Tax Coalition. The coalition has brought together hundreds of family business organizations over the years for the sole purpose of abolishing the Death Tax.