Unfortunately, a cattle operation is a capital intensive enterprise typified by having most of its assets invested in the land or cattle. The net result is that land that once provided nutritious beef or other staples for our diets and habitat for Mother Nature's flora and fauna is instead used to grow houses, shopping malls, and roads. Taxing capital at death is frustrating when one considers that the money used to buy, maintain and improve these assets was taxed when earned. I only bring up the disparity in the tax rates to point out the urgent need to, at a minimum, get the estate tax rates down. Obviously, NCBA's favored position is outright repeal of estate taxes.
Death is a lousy event to tax.
But if repeal is not likely, we strongly urge support of efforts to reform the estate tax code, whether it be through lower rates, increased exemptions or some combination thereof. William W. Beach, Senior Fellow in economics at the Heritage Foundation, has repeatedly stated that the costs of compliance and lost economic activity due to the estate tax far exceed the revenues gained by the federal government. I mentioned at the outset that NCBA is a member of the Family Business Estate Tax Coalition, a large group made up of trade associations and organizations who represent the vast majority of this nation's family owned enterprises. This group worked in a bipartisan fashion during the 104th Congress to build the case on the negative impact that the estate tax places on family businesses. The message of the Coalition is simple, and perhaps redundant, but needs to be repeated.