Family farms, small business would get tax cuts under new proposal

WASHINGTON, D.C.
November 4, 2009 12:30pm

• Would slash or even eliminate estate taxes

• If farm land remains in family as farm land, no estate tax

Legislation that would cut estate taxes for family farms and small businesses by more than $233 billion has been introduced in Congress by Rep. Jerry McNerney, D-Pleasanton.

“I’ve met with farmers, ranchers, growers, and small business owners from all across our area who are concerned about burdening their loved ones with a devastating tax when they pass their businesses and farms on to the next generation,” says Mr. McNerney. “There is no reason we should make it difficult for a farmer or small business owner who has worked hard their entire life to pass on that operation to his or her children.”

Unless Mr. McNerney’s legislation is implemented, in 2011 family farms and small businesses worth over $1 million will be taxed at 55 percent, his office says.

Specifics of the bill:

• Eliminating the estate tax on farmland that remains in operation and is passed down from one generation to another

• Eliminating the estate tax for small businesses worth up to $8 million.

• Cutting the overall estate tax by 10 percent and reducing the number of affected families.

Mr. McNerney says the changes will alleviate the financial burden on farmers and small business owners that might otherwise be forced to sell their property.