Congressman Salazar Votes To Keep Estate Tax From Growing On Colorado Farmers, Ranchers And Business Owners
Today, U.S. Congressman John Salazar voted to keep estate taxes from going up for more Colorado residents. Currently, the estate tax is scheduled to increase from 45 percent to 55 percent in 2011. Today's vote on H.R. 4154, the "Permanent Estate Tax Relief for Families, Farmers and Small Businesses Act" is intended to prevent that increase from taking place. Specific details of the tax are provided below. Although Congressman Salazar supports a full repeal of the estate tax due to its impact on the agricultural community, he believes today's vote was important to keep the tax from going up further. Earlier this year, Congressman Salazar sponsored the "Save the Family Farm and Ranch Act" which would have eliminated the estate tax for heirs of farms and ranches if they keep their land in production or conservation.
On today's vote, Congressman Salazar offered the following statement:
"I am happy that the House of Representatives took a proactive approach that will support farmers, ranchers and businesses owners across Colorado's Third Congressional District. Although I support a full repeal of the estate tax, doing so would have increased our national debt which we are working so hard to reduce. Although we did not get everything we wanted in this bill today, we moved forward with estate tax reform."
Background on HR. 4154
Under provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 the federal government levies an estate tax on the net value of assets transferred to other individuals upon a person's death. Currently, the exemption under the estate tax is $3.5 million per decedent, and the maximum estate tax rate is 45 percent. If Congress does not change the law beforehand, on January 1, 2011, the exemption under the estate tax would lower to approximately $1 million and the maximum estate tax rate will rise to 55 percent.