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The current U.S. federal estate tax threshold is so high ($5.5m for an individual, or $11m for a couple) that it only hits the wealthiest 0.2% of estates, not y
by _delirium 10y ago
The current U.S. federal estate tax threshold is so high ($5.5m for an individual, or $11m for a couple) that it only hits the wealthiest 0.2% of estates, not your typical small businessperson.
In addition, a large proportion of the "family farms" complaining about the estate tax are sham farms, essentially real-estate investment vehicles that throw a handful of cows on them in order to qualify for farm subsidies and property-tax exemptions. This is an especially popular kind of "family farm" in exurban Texas. There are genuine family farms, but they are much rarer than the number on paper, and typically don't, coincidentally, happen to hold as much prime investment land.
- dbcurtis 10y agoWell, your anecdote may apply in Texas. It does not match the experience of my extended family in Iowa and Minnesota. (currently doing estate taxes for my father-in-law's dairy farm, FWIW). The current estate tax threshold largely misses real family farms, but it doesn't have to move much to become a disaster. When I was in high school I personally witnessed neighbor widdows being beggared by the then ridiculous estate tax threshold. That memory is seared into my brain.