Bonham – Failure of the Senate to act before it adjourned for the August recess means the estate tax issue is still in limbo, according to Jerry Magness, Fannin County Farm Bureau president.

If Congress fails to act before Jan. 1, estate taxes will be reinstated with a $1 million per person exemption and 55 percent top rate.

“A million dollars isn’t what it used to be,” Magness said. “Many landowners in Fannin County could be snared by this $1 million exemption. Many times, upon his or her death, that land would have
to be sold just to pay the taxes on the estate.”

Magness said Farm Bureau supports a proposal offered by Sens. Blanche Lincoln (D-Ark.) and Jon Kyl (R-Ariz.) to phase-in a $5 million exemption and 35 percent tax rate over 10 years. Stepped-up
basis is included in their proposal.

The bipartisan Lincoln/Kyl amendment offers the most estate tax relief and the best chance for passage with 10 Democrats already on record in support of the proposal from last year’s budget amendment vote, Magness said.

“This legislation is important to farmers and ranchers who wish to keep their family heritage alive,” Magness said. “It is also important to the consumers in this nation who enjoy the most affordable and abundant food supply in the world.”