Clements: Legislation introduced in both the House and Senate would repeal the estate tax. Pat Wolff, American Farm Bureau Federation senior director of congressional relations, says tax reform increased the estate tax threshold, but the exemption level is not permanent.
Wolff: Tax reform that was recently passed by Congress increased the estate tax exemption level; in fact it doubled it to a little over $11 million a person. At that level most farmers and ranchers don’t have to worry about paying the estate tax until 2026 because that new exemption level goes away.
Clements: Because the exemption increase is temporary, farmers and ranchers must still plan to potentially pay the tax beyond 2026. However, legislation in the House and Senate would repeal the tax completely.
Wolff: If you don’t know what the exemption level is going to be, you have to plan for the worst. Legislation has been introduced to completely repeal the estate tax. That would be the best possible outcome. Then, farmers and ranchers wouldn’t have to worry about the tax. And, Farm Bureau is working to secure passage and the maximum support that we can for that repeal legislation.
Clements: Wolff says farmers and ranchers should tell lawmakers about the importance of repealing the estate tax.
Wolff: Farmers and ranchers who have an issue or a problem with the estate tax should pick up the phone and call their member of Congress. The bill in the House is H.R. 218. It’s a bipartisan bill introduced by Jason Smith of Missouri and Sanford Bishop of Georgia. In the Senate, the bill is S. 215, and that bill is offered by Senator John Thune of South Dakota.
Clements: Micheal Clements, Washington.