KLA: Estate Tax Bill Would Increase Exemption, Reduce Rates
10/30/2009 09:59AM
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Kansas Congressman Jerry Moran is co-sponsoring estate tax legislation that would increase the amount of an estate exempt from the tax and reduce the maximum tax rate. While Moran and groups like KLA would prefer a permanent repeal of the onerous tax, the First District representative said H.R. 3905 “is the next best alternative given today’s political and economic climate.”
The estate tax currently is set to be phased out next year, but will be fully reinstated in 2011 at 55% on estates worth $1 million or more if Congress doesn’t take action. H.R. 3905 would raise the estate tax exemption through a phased approach, starting at $3.5 million this year and increasing by $150,000 per year through 2019, when the exemption would reach $5 million. Beyond 2019, the exemption level would be indexed with inflation. The phase-down of the tax rate would work the same way, decreasing from 45% to 35% by 1% increments through 2019.
NCBA and KLA support H.R. 3905 and other measures intended to achieve meaningful estate tax reform. If Congress doesn’t act soon, farmers and ranchers will be faced with substantial estate tax rates and lower exemption levels.
For more information visit www.kla.org.
“Though we prefer a full repeal, H.R. 3905 would provide much needed certainty on the issue and significant relief for family farms and ranches,” said KLA President Elect Mark Smith of Sharon Springs .