Bipartisan legislation was introduced Wednesday that would permanently kill the onerous death tax. The Death Tax Repeal Act of 2017 was put forth by U.S. Sen. John Thune of South Dakota and U.S. Reps. Kristi Noem (R-SD) and Sanford Bishop (D-Ga.)

NCBA has long advocated for a full and permanent repeal of the death tax. Many farm and ranch families are asset-rich and cash-poor, with most of the value of their estate attributed to the value of the land, livestock and equipment they use to grow food and fiber for consumers around the world. However, the death tax forces them to pay based on the often non-liquid value of those assets.

The death tax also costs agricultural families a lot in unnecessary and unproductive compliance costs. According to the Joint Economic Committee, for every dollar of tax revenue raised from the death tax, a dollar is wasted in compliance costs. For example, in 2006, it was estimated that family businesses spent $27.8 billion just to comply with the law.

“As a fourth-generation cattle producer, I can attest that the death tax can wreak havoc with agricultural families, and it’s long past time that we kill it off once and for all,” said NCBA President Tracy Brunner, a cattle feeder and rancher from Ramona. “We thank Senator Thune and Representatives Noem and Bishop for introducing this common-sense bill and we hope Congress passes it as soon as possible.”

AFBF President Zippy Duvall said the bills are needed because farm and ranch families continue to face challenges to passing their family businesses to the next generation. “Farmers and ranchers face a number of factors that are unpredictable and beyond their control, from changing weather to fluctuating markets,” Duvall said. “These family-run businesses need a tax code that encourages investment, rather than one that punishes their success. We believe that repeal of the estate tax offers the best solution to protect farms, ranches and all family-owned businesses from the estate tax.”