Farmers Get Exemption From Estate Tax

Republicans continue eviscerating our tax code.  This time they’ve passed an exemption to the estate tax for family farms.  While it sounds well meaning by providing families the ability to keep their farms from generation to generation simple life insurance is all they need.  With simple financial planning and foresight they wouldn’t need to screw the rest of us who need government services and things like roads and bridges.

If you’re a family farmer you can figure out the value of your farm and call a life insurance company for a quote on term life insurance.  If you anticipate a $500,000 estate tax liability, for instance, you buy a $500,000 term life policy and when you die your heirs use that to pay the tax and you get to keep your farm in the family.  This isn’t rocket science folks.  Term life is inexpensive.  How is it we keep bailing out stupid people?

11 thoughts on “Farmers Get Exemption From Estate Tax”

  1. Here is the small print on my Term Life policy

    * At age 70 your benefit reduces to 50% of the initial coverage amount. At age 75 your benefit reduces to 10% of the initial coverage amount

    So my $500,000 policy now drops to $250,000 at age 70 and to $50,000 at age 75.

    Does the estate tax drop as well? No? So then for $500,000 in coverage after age 75 I would need to buy a $5,000,000 policy now.

    My $500,000 non-smoker policy costs me $829.00 per year in my age bracket (51 years old).

    $5,000,000 in term life coverage at my age (yes I asked my agent) is….wait for it…$7,249.71 per year. Heaven forbid we forget the 71 cents.

    I can solve the problem my moving to whole life or universal life policy in which case my $500,000 policy goes from $829 per year to a measley $7,689.00 per year.

    Perhaps not as cut and dried as one might think.

    I don’t know about farmers but I sure as hell don’t have $7,249.71 or $7,689.00 to spend every year on insurance. You think I’m rich or something!?

  2. Many insurance companies are essentially like gamblers who will only bet on fixed games and are just about as trustworthy.

    You are among the few who actually read the small print…which often hoodwinks hapless old ladies and is allowed to exist by way of regulators who serve as industry whores.

    Matt Thomas  

  3. Many of these farmers are right-wing tea party supporting Republicans who are driven largely by greed and self-interest. When last did one hear of a farmer organization advocating a noble idea or a public policy that would benefit the whole of society?

    The only thing that fetches them is the opportunity to hitch a free ride at the government’s expense…essentially they want immunity from paying their own way as the rest of us poor city folk are expected to do.

    Their exemption from paying the Pennsylvania inheritance tax is but the latest example.

    The Pennsylvania Milk Marketing Board just set its minimum milk pricing for dairy farmers effective August, 2012. How many other businesses would like to have customers forced to pay a state-mandated minimum price for their product?

    Another example of what someone less kind than me might call “welfare” are the federal milk price supports, including the Milk Income Loss Contract Program that makes cash payments to dairy farmers if the milk prices fall below a certain level.

    And these federal price supports themselves go much further than milk:

    Include more price supports for wheat and feed grains like corn, sorghum, barley, and oats, as well as cotton,  rice, peanuts, sugar, tobacco, soybeans and other oil seeds.

    This all goes on while 80,000 innocent kids in Pennsylvania’s cities are thrown off Medicaid.

    In his great novel “Animal Farm” George Orwell had the pigs take over the farm and paint on the barn: “All animals are equal”…only later adding: “…but some animals are more equal than others.”

    This time John…it ain’t the pigs.

    Matt Thomas

  4. Hit by the nation’s widespread drought, dairy, beef cattle and pig farmers may go broke because right-wing members of Congress, obsessed with cutting spending may very well prevent them from getting any emergency aid.

    Farmers growing crops have insurance to compensate for a failure of a season’s harvest, but cattle, pork and dairy farmers are excluded from these programs.

    Will this drought disaster finally teach these bone head country bumpkins a political lesson?

    Hell no….they will be out to the polls in November like a herd of lemmings voting for this same cowardly bunch in Congress whom value their pledge to Grover Norquist over what is in the best interest of their own nation.

    You’re right John…why should anyone feel sorry for these idiots.

    Matt Thomas  

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