NASHVILLE – The Beacon Center of
Tennessee today released a publication telling the stories of two
Tennessee farmers who could be harmed by the state’s onerous death tax.
The publication, titled Splitting the Farm, shows how the death tax damages the state’s economy and could put many family farms out of business.
Roger Blackwood’s mother deserted him when he was just 10, and
three years later he ran away from his abusive, alcoholic father. For
months, he was homeless on the streets of Nashville until he was taken
in and taught to read. He went on to start dozens of businesses despite
suffering from dyslexia, and 48 years ago, he purchased a farm in
Robertson County. While Roger loves to farm, he is afraid that when he
passes away, his children will have to sell of major portions of the
land just to pay the state death tax.
David Mitchell has spent his entire life working on the farm his
grandfather purchased. Due to the hard work of David and his family,
they have grown the farm from 125 acres to over 500 today. Despite
spending significant sums of money to hire attorneys and estate
planners, David is still concerned about his ability to keep the farm in
the family once his elderly father passes away. Had it not been for
David’s sweat equity, the farm would not even be large enough to be
subject to the tax.
This shows that Tennessee’s death tax truly is
unjust.
The state legislature is considering repealing or reducing the tax,
which brings in less than one percent of state revenues. The death tax
severely weakens Tennessee’s economy because it drives investments to
other states that do not impose the tax.
Those that remain in Tennessee and wind up paying the tax are those that can least afford it.
As Splitting the Farm
exposes, many farmers like Roger and David are faced with selling off
all or some of their land just to pay the death tax bill. In many cases,
the farms have been in the family for generations, yet the state’s tax
policy will lead to sprawling acres being chopped up and developed.
The Beacon Center released the publication as part of its “Faces of Freedom” series, which aims to highlight the personal stories of Tennesseans to show the consequences
of bad law and bad policy. A copy of the publication will be provided to
each member of the General Assembly as they debate whether to end the
state death tax during this legislative session.
An electronic version of Splitting the Farm is available online at: http://www.beacontn.org/wp-content/uploads/Splitting-the-Farm.pdf.
The Beacon Center of Tennessee’s mission is to change lives through
public policy by advancing the principles of free markets, individual
liberty, and limited government. The Center is an independent,
nonprofit, and nonpartisan organization dedicated to providing
policymakers and concerned citizens with timely solutions to public
policy issues in Tennessee. Visit the Center’s website at www.beacontn.org.
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