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President Obama, the Next 4 Years: The Economy-Looming changes in estate taxa real threat to farms, family-run businesses
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Snatches -- fiscal cliff if congress does not step in the new -- also pretty drastic increase to the so called death tax.
The top estate tax rate -- climb from 35% now to 55%.
Can small business though survive that -- Griff Jenkins hit the ground and Virginia to talk to a fourth generation family farm owner.
Greta if President Obama and congress is not act before the end of the year small businesses and farmers all across this country will face.
The real threat to their survival perhaps most daunting is the anticipated changed to the estate tax or death tax as it's called.
Currently -- a person's death his status -- -- 35%.
For everything above and beyond five million dollars.
But if nothing happens they will change and rise to 55%.
For everything over one million dollars.
-- like the -- -- here in southern Virginia we're very worried.
James -- is the second generation owner -- no crest farms they've been dating American families since 1929.
He took over for his father in the 1950s.
We think there's a lot of challenges him production will coach the best example this year would be the drought.
Those circumstances we prepare for I think parents showed -- situation.
With the taxes.
-- prepare.
To give up.
Talk about home.
-- have to get rid of seven.
To pay taxes.
I don't understand that question that.
Scott Bennett is the fourth generation owner with a lot resting on his shoulders farmers and ranchers across the United States you know.
This industry is asset rich and cash -- And the threshold of the estate tax is just entirely too low.
It affects more farmers and you can imagine and it is very concerning because it could essentially strip away.
All the work that we've put into -- develop our farms and create.
Food for America how do you feel about this prospect that the estate tax created in -- considerably increased 55%.
For everything over one million dollars.
You know it's very scary and it concerns farmers -- ranchers across the United States up.
That threshold is so low that on -- of many people including ourselves it's quite possible need to sell assets I feel agriculture -- -- backbone to this country.
And it really scary to think that they would just so -- the -- -- treat us with this a state or death tax it is something that we need to look at it will affect farmers and ranchers and you know to all the folks in Washington you know when we're here we're we're trying to feed America we don't have time to deal with these regulations.
We're busy enough trying to raise student safe food for for this world in this country that.
Then we can't necessarily if it's too difficult for us.
To try to deal with.
These volatile decisions that they make.
What this administration has done concerning.
You know the economy in general it's certainly trickles down and affects agriculture.
We referred her to the EPA is in the production agriculture and you know the burdens and the regulations that they put -- farmers just inhibit us from being efficient.
And producing safe and now.
Safe and clean food for the United States in the world -- -- -- it is the third generation.
I'm not a person who understands tax slowing great detailed.
But.
Based on the way it's been explained to me I do feel like it is very much an unfair attacks -- those of us who have.
Kind of paid -- news we've earned -- way we've worked really hard.
In the private sector to.
Create.
Something that is meaningful and worthwhile -- something that we're proud that weekend.
Pass to the next generation so from that standpoint I'm very concerned.
And not only from a personal standpoint but -- -- think about.
The good -- me the good.
The food supply moving forward.
I think all of those things.
Represented now reasons for us to be concerned about the potential for -- state tax problems moving forward.
