Washington, D.C. (Oct. 27, 1999) -- Congress may soon consider legislation that includes language calling for $16.3 billion in death and gift tax relief beginning in 2001. This measure would make it easier to keep farms and ranches in the family, the National Cattlemen’s Beef Association (NCBA) said today.
The tax relief legislation is included in the House Minimum Wage Bill (HR 3081), which is expected to be considered in the House late this week.
“Death tax is one of the leading causes of the break up of family cattle operations,” said George Swan, NCBA president and a cattle producer from Rogerson, Idaho. “Not only do producers have to deal with the death of a loved one, but they also have to deal with the substantial amount of time and money the family has to invest in trying to protect against having to buy their family enterprise back from the federal government.”
While cattle producers are disappointed that the provisions don’t kick in until 2001, they are pleased that Congress recognizes the unfairness of the death tax and continues to make progress toward eliminating it.
The measure comes after a presidential veto earlier this year of a broad-based tax package that would have repealed death taxes.
“This year cattle producers, working with a broad coalition, were able to insure that Congress made it a priority to include significant reduction in the death tax rates that led to full repeal by 2009,” said Len Mertz, a cattle producer from San Angelo, Texas, and chairman of the NCBA Tax and Credit Committee. “Unfortunately, the president vetoed that legislation, which would have provided $792 billion in tax relief. Thankfully, Congress is seizing an opportunity to salvage some of the death tax relief.”
HR 3081 would provide $16.3 billion in death and gift tax relief by: Substantially cutting rates for smaller estates, repealing the 5 percent surtax on large estates by 2001 and reducing the top rate to 50 percent by 2002. The bill also makes modifications to the Generation Skipping Transfer tax prior to its repeal.
Additionally, small business tax relief for producers is provided in 2001 by allowing a100 percent deductibility for health insurance in 2001 instead of 2003, increasing the small business equipment expense deduction to $30,000, and increasing the business meal expense deduction.
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