Local News for Will County, Joliet, New Lenox, Manhattan, Wilmington, Peotone, Beecher, Elwood, and Frankfort Illinois. All Photos Copyright Ann Baskerville, All Rights Reserved, Unless Otherwise Noted. Email requests for use with attribution to email@example.com.
Friday, October 15, 2010
Debbie Halvorson believes no family farm or small business should ever be lost due to estate tax
"Congresswoman Halvorson believes that no family farm or small business should ever be lost because of the estate tax. That is why she is proud to co-sponsor H.R. 3905 the Estate Tax Relief Act.
This bipartisan bill raises the estate tax exemption level from $3.5 million to $5 million and indexes the exemption level to inflation, which would prevent the estate tax from hitting small businesses and family farms.
The legislation also reduces the top estate tax rate from 45% to 35%. These changes are phased in over 10 years to minimize the impact on the deficit.
Congresswoman Halvorson believes that Congress should act on this legislation immediately in order to prevent the estate tax rate from rising back to 55% in 2011. "
With an exemption of 5 million and a hypothetical family farm of 300 acres which is valued at 10,000 an acre, that farm could be passed down without any inheritance tax because the 300 X 10,000 is 3,000,000, which is obviously under the proposed 5 million exemption.