Nevada County Picayune and Gurdon Times Newspaper Archive

Farm Bureau Pushing To Kill 'Death Tax'

from Ark. Farm Bureau Federation

A grassroots campaign by farmers, ranchers and small business owners from across the state to `kill the death tax' is moving into high gear.

"What we hope to do is make a concerted effort to let our delegation know that from the standpoint of a farmer or owner of a small business, who hopes to pass their farm or business on to their children, we want their vote for meaningful estate tax reform," Andrew Whisenhunt of Bradley, president of the Arkansas Farm Bureau Federation, said.

The campaign has generated more than 2,700 letters from farmers and small business owners across the state calling for the repeal of the estate or "death" tax. They will be delivered to members of the state's congressional delegation prior to next week's anticipated vote by the U.S. as a part of American Farm Bureau Federation's nationwide lobbying effort.

A news conference detailing the impact the death tax has had on farmers, ranchers and small business owners will be held prior to the congressional vote.

The House Ways and Means and Senate Finance Committees have approved tax bills increasing the estate tax exemption to $1 million from the current $600,000 level. The hikes will be phased in and indexed for inflation following the year 2007.

Whisenhunt says that helps, but more relief is needed.

"We really need to raise it to $2 million," he says. "If we could get a $2 million exemption, that would probably save about 95 percent of the estates that come up at the present time. But our goal remains to have no death taxes."

This also becomes an environmental issue when valuable farmland, much of which has been set aside for conservation purposes, is sold for development in order to pay the tax.

Whisenhunt says the message must be delivered that it's unfair to tax a family's farm or business again at the owner's death after they've been paying taxes on it throughout their lifetime.

"Oftentimes there's not enough cash on hand to pay this death tax and so those inheriting the farm or business have to sell parcels of it or go outo business altogether to pay Uncle Sam again, and we say that's wrong."