January 8, 2001

The Family Business Estate Tax Coalition, which includes agriculture and small business interests, will lobby for legislation to eliminate the estate tax. The National Cotton Council (NCC) says such agriculture tax coalitions are consolidating their efforts to ensure any tax reform measures that are debated will include provisions for agriculture. Last year, the House and Senate approved legislation eliminating the estate tax, but President Clinton vetoed it.

A NCC report says the coalition has been told that legislation will be introduced early in the new session of Congress by Reps. John Tanner (D-TN) and Jennifer Dunn (R-WA). Sen. Jon Kyl (R-AZ) has indicated his intention to introduce legislation in the Senate, and Sen. Charles Grassley (R-IA), the new Senate Finance Committee chairman, has stated publicly that estate tax reform is a top priority. Efforts are also underway to urge the incoming Bush administration and Congress to include Farmers and Ranchers Risk Management (FARRM) accounts in any tax reform package.

Sen. Grassley, also a member of the Senate Agriculture Committee, will fill the vacant chairmanship of Senate Finance Committee. The seat was opened when Sen. William Roth's (R-DE) failed the re-election bid.

Sen. Grassley told an Iowa Farm Bureau audience that he hopes to move legislation repealing the estate tax. He also has proposed legislation dealing with concentration in the agricultural sector. He said the nation needs stronger anti-trust laws and hopes the next Congress will pass legislation addressing issue.