STATEMENT Regarding President’s Veto of the Death tax by George Hall, President NCBA

"NCBA is disappointed that the president has chosen to veto a bill that has obvious benefits for family ranchers, farmers and other small businesses. When both houses of Congress passed the measure with bipartisan support, they sent a clear message that estate taxes are costly and contribute to the demise of family businesses.

"This country is running record surpluses. Part of that should be returned to the public by easing tax burdens. Most cattle families have spent generations building the family business. Still, the business could easily be wiped out due to the estate tax.

"The tax burden on estates can reach up to 55 percent for estates worth $3 million or more. This creates a quandary for cattlemen and women because their business is capital intensive. For example, a 500-head cattle ranch easily reaches a value of about $1.8 million when cattle, land and equipment are factored in. But that same estate generates a net income of only about $50,000. Still, the ranch would be subject to about a $450,000 tax burden.

"Unfair is unfair. Forcing a hard-working citizen to spend thousands on accountants and lawyers to minimize tax burdens simply is not reasonable. The number of family cattle ranches has declined 20 percent in the last 20 years. Part of that decline can be attributed to families having to sell all or part of their businesses to meet the death tax obligation.

"Keeping a family ranch operating not only helps the families running these businesses, but it also means a lot to rural communities that have an agriculture base. The entire country loses when cattle producers are put out of business due to death taxes. Ranches and farms provide open space. This open space is reduced or eliminated when a rancher sells property to developers. ‘

"The National Cattlemen’s Beef Association will continue to fight for meaningful tax reform for cattle producers."

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Producer-directed and consumer-focused, the National Cattlemen's Beef Association is the  trade association of America’s cattle farmers and ranchers, and the marketing organization for the largest segment of the nation’s food and fiber industry.