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What would you do? Like millions of others, you’d sell the farm (and all the memories) just to pay the tax bill.

Notice that emotional tug of "all the memories". As I said before the farm and small business is sold because the kids want the cash and do not want to continue the business (in most cases). There is plenty of equity for them to borrow against if they truly want to keep the business going.

I repeat, More taxes will be paid by getting rid of the inheritance tax as property will no longer get an increased basis through the estate. Watch the kids scream then.............. But it would most likely be a cheap 15% cap gain taxes (assuming the rats don't really screw things up)

Of course they can avoid the tax by continuing the business but that does’nt get them a new car.

There are already exemptions for passing on family owned business such as farms. This is a very emotional issue that gets used by many people.

Get the facts:
1) very few people pay the inheritance tax just like very few people paid taxes on the gain from the sale of the house so they finally got rid of the tax for the most part.

2) TAX REVENUE GOES UP without it (the unspoken truth that no one wants to talk about)

Personally, I say get rid of the Inhertiance tax, it makes our life simple and is one less intrusion in our lives. Unfortunately, the state inheritance taxes are worse than the federal taxes and the tax doesn't go away, it just changes form