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capitalbuilding 120The House of Representatives voted to repeal the 'death tax' last week.  The tax has been onerous for local farmers who are forced to sell off parts of their farms in order to keep them in their families for new generations to farm.

"Death should not be a taxable event. Yet for our Southern Tier and Finger Lakes farmers and families who've lost loved ones, it can mean the end of their livelihood," said Congressman Tom Reed, who co-sponsored the legislation.  "This is because the death tax can force grieving families to sell off parts of family farm or the business entirely. This is wrong. I care about our grieving families and want them to have a fair shake after a tragic loss. That is why I voted to repeal the unfair and unjust death tax."

Largely unsuccessful attempts have been made to repeal the Federal estate tax ('death tax') every year, though it has been regularly eroded with exemptions.  It was established in 1916.  But the United States Department of Agriculture (USDA) estimates that after exemptions only about 0.6% owe Federal estate taxes.  Another 2.1% filed a return but owed no estate taxes.  97.3% did not file a return.  The figures were based on the share of farm operated estates in 2013.

"Under present law, the estate of a decedent who, at death, owns assets in excess of the estate tax exemption amount ($5.25 million in 2013 for an individual) must file a Federal estate tax return," a USDA web page explains.  "However, only those returns that have a taxable estate above the exempt amount after deductions for expenses, debts, and bequests to a surviving spouse or charity are subject to tax at a graduated rate, up to a current maximum of 40 percent."

The measure would have to be passed in the Senate and signed by President Obama to actually repeal the tax.  Some farm bureaus endorsed the attempt to repeal the tax.

"Repealing the estate tax has long been a priority of Farm Bureau," said Chemung County Farm Bureau president Ashur Terwilliger.  "So much of a farmer's assets are tied up in land, building and equipment.  The surviving members of a farm family should not have to sell off important pieces of their business in order to pay a death tax. I appreciate Rep. Reed making this issue a priority as well."

"No family should have to sell off land just because a family member died," Reed said.  "The death tax is wrong and is a relic of a big government era that we have moved on from."

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