By Andi Anderson
Ahead of their return to Springfield, a bipartisan group of Illinois lawmakers are proposing the Family Farms Preservation Act, aiming to ease the burden on family farmers by increasing the estate tax threshold.
Key Points:
- Current Threshold: $4 million net assets
- Proposed Threshold: $6 million
- Tax Rate: Ranges from 0.8% to 16%
- Goal: Prevent forced sale of farmland due to estate tax burden
- Legislation: Senate Bill 2921 and House Bill 4600
- Sponsors: Sen. Dave Koehler (D) and Rep. Sharon Chung (D)
Benefits:
- Fewer family farms subject to estate tax.
- Surviving spouses can inherit unused exemption.
- Helps next generation keep the family farm.
Challenges:
- Budget considerations and potential revenue loss for the state.
- Opposing views on increasing or decreasing the threshold.
Background:
- Current tax seen as unfair to "land-rich, cash-poor" farmers.
- Previous efforts for broader reform haven't gained traction.
- Governor Pritzker remains silent on the issue.
Significance:
- Potential bipartisan breakthrough in a politically divided state.
- Offers relief to struggling family farms.
- Could impact future tax and budget debates.
This bipartisan effort highlights the need to balance tax fairness with supporting key sectors like agriculture in Illinois. The outcome will depend on navigating budget concerns and finding common ground among lawmakers.
Photo Credit: pexels-nataliya-vaitkevich
Categories: Illinois, Government & Policy