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Thank you Brian but the fiscal cliff looming farmers and small businesses are worried about how the potential expiration of the lower estate tax rate could affect them William La -- has more on this -- live in our LA bureau William.
-- in the US needed revenue in 1916 Erick that if state tax is one to 10% today's 35% jumping to 55%.
In January while supporters say the US needs this to promote equality.
Dozens of countries have already eliminated including Russia.
And Communist China.
Who -- her manager Kevin -- words dawn to dusk drives a twelve year old truck.
And earns less than a typical bureaucrat in Washington DC.
Yet the federal government considers him rich enough to pay a death -- There is no way financially my kids.
Can pay with.
And keep contraption -- the idea behind the estate -- -- to prevent the very wealthy among us from accumulating vast fortunes and passing them on to the next generation.
Analyst Patrick Lester that's not the American farmer -- to -- poster child for the state taxes probably would.
Paris Hilton celebrity but also hotel Harris.
That's someone that it's really more targeted -- not ordinary Americans.
Currently the federal government taxes estates worth five million dollars and up.
When the bush era tax cuts expire in January rates increase to 55% on estates of a million dollars or more.
While some Republicans want to eliminate the death tax entirely the president proposes a 45%.
Rate -- estates of 3.5 million dollars -- up.
If we are burdened with millions of dollars of the state tax.
It forces the breakup of ranches and farms and it's not good for the environment.
Is target for future generations and -- good for American general.
-- pay BI -- two million dollars when he inherited the ranch decades ago.
Come January the tax burden on his children would be more than thirteen million.
Critics say about 97% of -- we farms could be affected by this tax increase supporters disagree and they argue this tax is needed.
To tax unrealized capital gains.
That are handed down a family family so the point is you guys estate -- is just another boulder in the fiscal cliff repaired all night.
Big time really an -- much for that report.
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