Sen. Thune (SD) Thune Raises Concerns over Farm Bureau Report on Impact of Death Tax in South Dakota
Sen. John Thune
|Senator Thune speaks with Jerry Oster and Michelle Rook with WNAX at Dakotafest.|
Recently, the American Farm Bureau Federation, which represents the interests of farmers and ranchers across the country, issued a report that detailed how over 70 percent of South Dakota’s family farms could be significantly hurt by the death tax legislation recently passed by Senate Democrats. The legislation, which was passed in the Senate along party lines on July 25th, would greatly expand the reach of the death tax. Their plan would allow the current top death tax rate to increase from 35 percent to 55 percent and would apply the tax to farms and businesses valued over $1 million versus the current $5 million exemption amount.
Cropland in South Dakota has increased by more than 23 percent in the past year alone. The AFBF report shows that due to recent increases in land values, a 714 acre family farm or ranch, would likely exceed the $1 million exemption level. Additionally, 431 acres of higher-value cropland would likely place farm assets above the $1 million exemption. Without the current $5 million exemption, a majority of family farms across the state would be impacted, and many would be placed in jeopardy of having to sell off assets and family holdings in order to pay the unfair double federal tax.
Earlier this spring, Senator Thune introduced legislation that now has 37 cosponsors to fully repeal the death tax. While the Senate-passed legislation to increase the death tax rates will not likely be approved in the U.S. House of Representatives, Senator Thune will continue to be a vocal leader in Washington to make sure that the death tax does not jeopardize American farmers and ranchers.