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4-27-10 Estate Taxes

 
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Hi this is Nebraska Farm Bureau's Ag News Now Radio Service, I’m Tina
Henderson.



 



Now here is today’s Farm Bureau
View program it is coming to you in 3…2…1…



 



No
one likes paying taxes, but for farmers and ranchers estate taxes is a serious
threat to the future of their farms and ranches. Here to talk more about this
subject is American Farm Bureau president Bob Stallman.



 



The report runs 2:42.



 



Bob thanks for joining me on today’s program!



 



Question 1                     How does ESTATE TAX affect FARMERS
AND



                                      RANCHERS?



 



BOB
STALLMAN (AFBF PRESIDENT):           IT’S
TIME TO PUT ESTATE TAXES TO REST.  YOU
KNOW, NO ONE LIKES TO PAY TAXES, BUT THIS IS A SPECIAL CIRCUMSTANCE.  THIS IS AN IMMORAL, UNFAIR TAX PARTICULARLY
TO FARMERS AND RANCHERS WHO WANT TO PASS ON THEIR FARMS AND RANCHES TO THE NEXT
GENERATION AND WHAT IS HAPPENING WITH THE ESTATE TAX IS MAKING IT VERY
DIFFICULT AND COSTLY FOR FAMILIES TO PLAN ON HOW TO DO THAT.



 



Question 2                     THE UNCERTAINTY COMES FROM
THE



FACT
THAT THE ESTATE TAX RATE AND EXEMPTION CHANGED NINE OUT OF THE PAST 10 YEARS.
How does Congress fix this?



 



STALLMAN:
      THE FIRST THING WE’RE ASKING
CONGRESS TO DO IS TO PROVIDE SOME PERMANENCE. 
YOU KNOW, PUT THE LAW IN PLACE AND LEAVE IT IN PLACE.  DON’T PLAY THESE BUDGET GAMES BY SAYING THIS
IS ONLY GOING TO LAST FOR A COUPLE OF YEARS AND THEN REVERT BACK TO SOMETHING
ELSE.  GIVE US SOMETHING WE CAN COUNT
ON.  AND WHAT WE REALLY WANT AND THINK
WOULD BE FAIR FOR FARMERS AND RANCHERS, IS $5 MILLION PER PERSON EXEMPTION AND
A 35 PERCENT TAX RATE AND THEN INDEXING THOSE VALUE TO INFLATION TO OFFSET THE
IMPACT OF INFLATION OVER TIME.



 



Question 3                     Why do FARMERS AND RANCHERS
NEED



THE HIGHER EXEMPTION LEVEL?



 



STALLMAN:
      SOME WHO ARE NOT FAMILIAR WITH THE
AMOUNT OF INVESTMENT IT TAKES TO HAVE A WORKING FARM OR RANCH, MAY THINK THAT
$5 MILLION IS A LARGE EXEMPTION, BUT WHEN COMBINES COST IN EXCESS OF A QUARTER
OF A MILLION DOLLARS AND LAND PRICES CONTINUE TO GO UP, IT REALLY DOESN’T TAKE
A VERY LARGE FARM TO EXCEED THAT $5 MILLION EXEMPTION AND IT’S ALL ABOUT HAVING
A SIZE OF FARM THAT’S LARGE ENOUGH TO BE PRODUCTIVE FOR THE LONG HAUL. AS WE
SAY IN AGRICULTURE, FARMERS AND RANCHERS ARE ALWAYS LAND RICH AND CASH POOR AND
THAT’S WHAT CAUSES THE PROBLEM IF YOU DON’T HAVE A HIGH ENOUGH EXEMPTION, YOU
HAVE TO SELL PART OF THAT LAND TO PROVIDE THE CASH TO PAY THE ESTATE TAX, WHICH
WE THINK IS UNFAIR.



 



Question 4:                    IF CONGRESS DELAYS, who will
BENEFIT…



LAND DEVELOPERS?



 



STALLMAN:
      IF CONGRESS DOESN’T FIX THIS AND FIX
IT SOON, IT WILL PLACE A TREMENDOUS BURDEN ON FARMERS AND RANCHERS  YOU KNOW A LOT OF PEOPLE WANT TO SAVE
FARMLAND.  WELL THE WORST WAY TO SAVE
FARMLAND IS TO HAVE AN ESTATE TAX THAT CAUSES FARMS AND RANCHES TO BE SOLD OFF
AND PARTS TO BE SOLD OFF, GENERALLY FOR DEVELOPMENT, TO RAISE CASH TO PAY THE
ESTATE TAX.  IF WE WANT TO KEEP FARMLAND
PRODUCTIVE IN THIS COUNTRY, KEEP OUR FARMS AND RANCHES PRODUCTIVE AND
ECONOMICALLY VIABLE, WE NEED TO BE SURE THAT THE ESTATE TAX DOESN’T PREVENT US
FROM DOING THAT.



 



Bob
thanks for joining me!



 



Thanks
for Listening!