Letter to the Senate Urging Elimination of the Estate Tax - March 6, 2002

Speaker: Billy Ray Smith
Subject: Urging elimination of the Estate Tax - March 6, 20
Venue: U.S. Senate
Date of Speech: March 06, 2002

March 6, 2002

Dear Senator:

The National Association of State Departments of Agriculture (NASDA) adds its voice to the many you have already heard from urging elimination of estate taxes for family farms. Estate tax exemptions are vital ingredients to a successful, productive future for all Americans, particularly those families involved in agriculture.

Senator Phil Gramm and Senator John Kyl are planning to offer an amendment that will make permanent the death tax repeal provisions enacted in June 2001. The amendment is tentatively planned to be attached to the energy bill when it comes before the Senate for consideration. We urge you to vote in favor of permanent the repeal of the death tax as well as oppose any procedural hurdles that may prevent the consideration of this critical amendment.

Estate taxes have contributed to the gradual extinction of the "family business." As enterprises are passed on, beneficiaries are often forced to sell large portions of land, machinery, or other assets simply to pay the taxes. The results are that many operations are forced to liquidate some assets or are forced out of business altogether. The phase out of the burdensome death tax enacted last year in the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) will help reduce the time, money and energy spent by business owners on estate planning and preserve many companies that today are sold for tax reasons when an owner dies. However, because EGTRRA expires in 2011, we are concerned about the temporary nature of the death tax repeal provisions and urge you to make real and permanent the sense of the Senate that the estate tax should be permanently repealed.

We thank you for your consideration of this important issue to America's farmer and ranch families. Should you have any questions or concerns, please contact the NASDA staff at 202-296-9680.

Sincerely,

Bill Ray Smith
President, NASDA
Commissioner, Kentucky Department of Agriculture