Congressman Testifies Before Senate Finance Committee

Congressman Tim Mahoney (FL-16) provided testimony yesterday to the Senate Finance Committee emphasizing the nation's need to change the estate tax law that forces the sale of farms to pay the estate tax.

"America's ability to feed itself is a matter of national security. The ‘death tax' has pushed scarce farmland into the hands of developers and robs cash-strapped farmers of working capital by forcing them to invest in schemes to pay the tax," said Congressman Mahoney.

Last year, Congressman Mahoney introduced the Save the Family Farm and Ranch Act of 2007, which would defer payment of the estate tax on family farms as long as the land is used for agricultural or conservation purposes. The Save the Family Farm and Ranch Act of 2007 would apply to those who receive over 50 percent of their gross income from that farm or ranch operation. Using the IRS's definition of farmland, this bill will help those true farmers and ranchers, and not passive investors and "gentlemen farmers."

Tax law for the years 2006 through 2008 permits a $2 million exemption on inherited estates. Assets over $2 million are taxed at 45 percent. As a result, many family farmers who do not have the cash necessary to pay the estate tax have been forced to sell their land, which is often converted into commercial real estate or housing developments, reducing our scarce farmland.

Representative Mahoney also supports the House Budget Resolution, which accommodates elimination of estate taxes on all but a minute fraction of estates by reforming and substantially increasing the unified tax credit.

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