[Congressional Record Volume 143, Number 46 (Thursday, April 17, 1997)]
[Extensions of Remarks]
[Page E709]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            INTRODUCTION OF THE FARMER ESTATE TAX RELIEF ACT

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                          HON. STENY H. HOYER

                              of maryland

                    in the house of representatives

                        Thursday, April 17, 1997

  Mr. HOYER. Mr. Speaker, today I am introducing the Farmer Estate Tax 
Relief Act of 1997. This bill is designed to make it easier for 
America's farming families to keep farming.
  In discussions and visits with farmers throughout my district, I have 
learned that there is serious concern about the ability to pass farms 
on to future generations. The $600,000 exclusion from estate taxes is 
not enough to preserve these small businesses that are so dependent 
upon large capital and land investments.
  In Maryland, I understand that there are about 1,000 farms valued at 
more than $1 million. A typical farm has anywhere from $20,000 to 
$200,000 worth of equipment.
  It is a shame to hear stories of sons and daughters that must sell 
off part of their parents' farm simply to pay off the estate tax. While 
retaining the $750,000 ``special use'' valuation, my legislation would 
raise the exclusion by $1.4 million, allowing these heirs to exclude a 
total of $2 million of farm assets.
  To encourage these heirs to stay in one of America's most crucial 
professions, my bill offers the total higher exclusion only to heirs 
that continue farming for at least 10 years.
  Maryland farmers have raised a second issue with me that is addressed 
by my bill. These independent business people, who often do tough, 
physical labor into their 70's and 80's, must sometimes sell farm 
assets to pay high medical bills.
  The legislation I am introducing today would allow a one-time 
exclusion from capital gains taxation for up to $500,000 of medical 
expenses. Taxpayers could apply this exclusion to the sale of farm or 
farm assets in the year of, before, or after the medical expenses 
occurred.
  I know that there are many other Members that share my concerns on 
these issues. While estate taxes can also have a negative impact on 
other types of family businesses, I am most concerned about the impact 
on the men and women who put food on our tables.
  As a nation, we cannot afford to push these farm families out of 
business and I am pleased to introduce this bill to provide them with 
relief. I urge prompt passage of the Farmer Estate Tax Relief Act.

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