Agriculture Looks to Senate Estate Tax Vote

June 23, 2000

The Senate's vote next week on eliminating the estate tax moves cattle producers one step closer to receiving relief from a levy they say is "overly burdensome," the National Cattlemen's Beef Association says. The Senate leadership has scheduled debate on the bill for Wednesday, June 28. The measure passed 279-136 in the House earlier this month on a strong bipartisan vote. The bill would reduce estate taxes in 2003, and by 2010 the measure would fully repeal death and gift taxes.

"We've said it many times before - death is a lousy event to tax," said George Hall, a cattle producer from Mustang, OK, and NCBA president. "Estate taxes are an unfair and excessive burden. Judging by the House passage of this bill and the Senate decision to vote on the measure, it seems lawmakers are beginning to understand this."

NCBA co-directs the 10-year-old Family Business Estate Tax Coalition, a 140-member group representing various business sectors. The group has actively worked to bring public awareness to the plight family farmers and other small business owners often face when a family member dies.

"These are our current choices: Spend a substantial amount on accountants and tax lawyers, or pay half of your net worth to meet death tax obligations, or liquidate part of your assets - such as land, cattle or equipment - to pay the tax," Hall said. "And even careful estate planning won't guarantee a rancher won't have to do one of the last two."

"Senate passage of this legislation would be a win for the cattle industry, all small businesses and taxpayers in general," Hall said. "We'd like to see the president also recognize this by putting his signature on a final bill."