The U.S. House of Representatives voted to extend the current tax code for another year. This includes keeping the estate tax, known as the death tax, at its current level of 35 percent for estates worth more than $5 million per individual and $10 million per couple.
Tackling the death tax is the top priority for the National Cattlemen’s Beef Association (NCBA). Even though full repeal of the death tax is the top priority for NCBA, Kent Bacus, associate director of legislative affairs, says the plan passed by the House today is a step in the right direction.
"The good news is that the House-passed tax package provides a continuation of current estate tax relief through 2013. NCBA encourages both the House and Senate to keep the estate tax provision in any final tax package," said Bacus.
If Congress fails to act by the end of 2012, the death tax will revert to a $1 million exemption level at a 55 percent tax rate.
The House is scheduled to discuss the future of comprehensive tax reform on Thursday.
"If Congress is serious about comprehensive tax reform, it must provide permanency in the tax code and provide permanent relief from the death tax. Farmers and ranchers already face unpredictable conditions such as the weather and input costs, but the tax code should not be an unpredictable situation they should face," said Bacus. "Until full repeal of the death tax can be achieved, at minimum, Congress should maintain the current estate tax relief."