The first steps have been taken to abolish a tax many farmers dislike.
Sen. Chuck Grassley, R-Ia., reintroduced legislation to permanently repeal the federal estate tax, also known as the death tax.
The senator is calling the tax “punitive.” Grassley says it can unfairly target farm families as a result of the farm owner’s death. A similar version has been introduced in the house.
Grassley says he hopes the bill will be part of President Trump’s promise for tax reform.
Paul Neiffer, farm CPA and AgWeb contributor, says to be careful what you wish for, because other changes could follow.
“[The government] is floating around ideas where it might be like Canada where there could be a capital gains tax that’s owed at death,” said Neiffer. “Most of our farmers may want to keep the estate tax as it is now.”
Neiffer isn’t sure if there is enough votes to make the repeal permanent. If it does get passed, it could be for 10 years.