As my colleague Josh Hoxie points out in a recent article, there are 2.2 million farms and 28.2 million small businesses in the United States, yet in 2013, only 120 farms and small businesses owed any federal estate tax at all. Their average value topped $50 million.
But let’s be clear, for 15 years, this anti-tax lobby has held farmers hostage. The minute numbers of farmers that may someday pay an estate tax could be protected by simple Congressional action and reform. But anti-tax forces have blocked these reforms.
Without a few farmers to testify at their hearings, they would have to explain that the real beneficiaries of estate tax repeal would be the sons and daughters of today’s billionaires and multi-millionaires.
Yesterday, the Chairman Reichart’s committee found a Texas rancher and a farmer to testify. Both were asked if they would support reform to retain the estate tax, but exempt farms and ranches like the ones they owned.
Texas rancher Bobby McKnight was circumspect, saying the “devil is in the details.” But he also alluded to taking wealth off the farm for other enterprises. While complaining about tyrannical taxation, he did not mention the over $850,000 in farm subsidies he has accepted from the evil federal government over the last two decades, according to the Environmental Working Group.
When Tennessee farmer Brandon Whitt was asked if he would support reform, not repeal, he replied, “Sure.” And this is what the GOP is truly afraid of. Without Brandon Whitt to sit at the hearing, they would have to reveal the true face of the estate tax – the sons and daughters and grandchildren of the Forbes 400.