|
|
U.S.
Senator Member: Finance, Agriculture, Energy, Ethics and Aging Committees |
|
|
|
||
|
For Immediate
Release Thursday , April 03, 2008 |
CONTACT:Stephanie Valencia – 202-494-8790 |
|
| Sen. Salazar Continues Work in Senate Finance Committee for Fiscally Responsible & Meaningful Estate Tax Reform
WASHINGTON, DC - In a continued effort to address the challenges posed by our nation's estate tax system, the Senate Finance Committee today held its third hearing on the issue. The hearing, entitled “Outside the Box on Estate Tax Reform: Reviewing Ideas to Simplify Planning ,” was intended to examine proposals to reform our current estate tax system. As a member of the Senate Finance Committee, United States Senator Ken Salazar has been actively involved in efforts to develop estate tax reform proposals and will continue to work toward a permanent, comprehensive and fiscally responsible solution to the estate tax that protects hard-working family farmers, ranchers, and small businesses. The Senate Finance Committee has held two previous hearings on estate tax reform this Congress. The first hearing, held last November, examined challenges posed by the current system. The second hearing, held in March, examined wholesale alternatives to our current estate tax system. Senator Salazar has long been working to provide estate tax relief to family farmers, ranchers and small businesses. Last month, Senator Salazar offered an amendment to the Senate Budget Resolution to create a deficit-neutral reserve fund dedicated to estate tax relief for family farmers and ranchers and small business owners. This reserve fund would have provided sufficient funds to accommodate a range of different reform options , allowing Congress sufficient flexibility to continue to examine how to move forward with permanent, comprehensive and fiscally responsible estate tax reform. The amendment was defeated by a vote of 38-62. Last year, Senator Salazar and Senator Pat Roberts (R-KS) introduced the Family Farm and Ranch Act of 2007, which grants an estate tax exemption for family farms and ranches that stay in the family and continue operations after the original estate-holder passes away. Below is Senator Salazar’s opening statement. “This is the third hearing this Committee has held to examine our current estate tax system, and to explore possible reforms to that system to make it more predictable and fair. “I am extremely pleased that we have devoted time and energy to this issue. Colorado is a farming and ranching state. It is also a state that, like Montana and Iowa, relies heavily on small businesses to drive our economy. That is why finding a permanent, comprehensive solution to the estate tax is so important to me. “I also strongly believe that any effort to addressing the challenges associated with our current estate tax system must be fiscally responsible. We had a good debate about this issue during consideration of the Senate Budget Resolution, and I continue to believe that will cause serious harm to future generations – the very same generations we are presumably trying to help by fixing the estate tax – if we burden them with trillions of dollars of additional debt. “The purpose of this morning’s hearing is to examine whether we can achieve our objective of a fair, permanent, and fiscally responsible estate tax by making modifications to our existing estate tax system, rather than by replacing it with an alternate system along the lines of what was discussed at our last hearing. “As we consider that question, I am interested to hear from our witnesses whether they believe it will be enough to make changes to the existing rate and exemption structure, or whether we need to take additional steps to ensure that the estate tax does not overly burden small businesses, farmers, and ranchers. “Earlier this year, I introduced legislation – along with my Finance Committee colleagues Senators Roberts and Crapo – that would exempt family farmers and ranchers from having to pay the estate tax as long as their farm or ranch continues to be owned and operated by the family, and as long as farming or ranching constitutes a majority of their income or their total estate. “I am hopeful that my legislation will help begin a serious discussion of how to protect family farmers and ranchers as we work toward a solution on the estate tax that is comprehensive, permanent, and fiscally responsible. I would also like our witnesses to comment on whether they believe my proposal or something similar would be an effective way to work within the existing system to target meaningful relief to those who need it most. “Mr. Chairman, I
want to thank you once again for your efforts to thoroughly examine
issues surrounding the estate tax. I hope that we can build on what
we have learned in our three Committee hearings on this and take meaningful
action on estate tax reform – both in this Committee and on the Senate
floor – in the near future.” ###
|
||
