As Democratic Senator Heidi Heitkamp travels around North Dakota to discuss tax reform, it’s clear she is just as out-of-touch as the rest of Washington Democrats.

In listening sessions this week, Heitkamp defended the death tax, which she has voted to keep in place several times, by citing the low number of estate taxes filed in North Dakota. But what she conveniently failed to mention was the astronomical cost it’s had on farms and small businesses. In FY 2016, the death tax cost North Dakotans more than $45 million, which is why it’s been called, “a death sentence—on family farms and small businesses.”

“Heidi Heitkamp’s commitment to saddling hardworking North Dakotans with higher taxes has devastated North Dakota farms and small businesses,” said NRSC Spokesman Michael McAdams. “North Dakotans won’t forget that while they were fighting to make ends meet, Heidi Heitkamp was busy working with Barack Obama to raise their taxes.”

Background:

In March 2015, Heitkamp Voted Against An Amendment On The Fiscal Year (FY) 2016 Senate Budget Resolution To Allow For Legislation To Eliminate The Federal Estate Tax. On March 26, 2015, Sen. Heitkamp voted against the Thune, R-S.D., amendment no. 607 that would create a deficit-neutral reserve fund to allow for legislation that would eliminate the federal estate tax. (S. Con. Res. 11, Roll Call Vote #114, 3/26/15; Adopted 54-46: D 1-43, R 53-1, I 0-2; Heitkamp voted NAY)

In March 2013, Heitkamp Voted Against An Amendment On The FY 2014 Senate Budget Resolution To Allow For Legislation To Permanently Eliminate The Federal Estate Tax. On March 22, 2013, Sen. Heitkamp voted against the Thune, R-S.D., amendment no. 307 that would create a deficit-neutral reserve fund to allow for legislation to permanently eliminate the federal estate tax as long as the legislation’s costs are offset without raising new revenue. (S. Con. Res. 8, Roll Call Vote #67, 3/22/13; Rejected 46-53: D 2-50, R 44-1, I 0-2; Heitkamp voted NAY)

In March 2013, Heitkamp Voted Against A Substitute Amendment On The FY 2014 Senate Budget Resolution That Called For A Budget That Assumed A Tax Code Overhaul That Would Eliminate Both The Estate Tax And Capital Gains Tax. On March 22, 2013, Sen. Heitkamp voted against the Paul, R-Ky., substitute amendment no. 263 that would call for a balanced budget in five years with no revenue increases. It would allow up to $942.6 billion in discretionary spending for fiscal 2014, including $529.2 billion for defense. It would assume repeal of the 2010 health care and financial regulatory overhaul laws and assume a tax code overhaul that would eliminate the estate and capital gains taxes and switch to a flat tax system. It would assume changes to Medicare to provide seniors the same health insurance as members of Congress and assume a gradual increase in the eligibility age for Social Security from 65 to 70 over 20 years. It also would assume the elimination of the Commerce, Housing and Urban Development, Education and Energy departments. (S. Con. Res. 8, Roll Call Vote #69, 3/22/13; Rejected 18-81: D 0-52, R 18-27, I 0-2; Heitkamp voted NAY)

“Estate Taxes Tend To Be More Onerous For Farms Than Other Small Businesses Because 80 Percent Of Farm And Ranch Assets Are Land-Based. When Estate Taxes Exceed Cash And Other Liquid Assets On Hand, Surviving Family Members May Be Forced To Sell Land, Buildings Or Equipment Needed To Keep The Business Operating.” “Ask farmers or ranchers to tell you the greatest joys of their chosen calling and being close to the land, knowing that their work makes a difference and experiencing the fruits of their labor at harvest will all top the list. But the greatest joy may well be the assurance that their farming and ranching operation will be preserved for future generations. Unfortunately, the federal estate tax does much to steal the joy of keeping the farm in the family. Estate taxes are especially harmful to farmers and ranchers because their businesses are capital-intensive with a high concentration of assets tied up in land, buildings and equipment. Estate taxes tend to be more onerous for farms than other small businesses because 80 percent of farm and ranch assets are land-based. When estate taxes exceed cash and other liquid assets on hand, surviving family members may be forced to sell land, buildings or equipment needed to keep the business operating. This has a multiplier effect because rural communities and the businesses they support also suffer when farms and ranches downsize or disappear. Moreover, farmland close to urban centers is often lost forever to development when estate taxes force farm families to sell off land to pay taxes.” (John Hart, “Estate Tax: An Onerous Burden For Family Farms And Ranches,” North Dakota Farm Bureau (NDFB) website, 2/15/10)

The Death Tax Has Been Called “A Huge Burden—And In Some Cases, A Death Sentence—On Family Farms And Small Businesses.” In a Dec. 7, 2009, report, the Western Farm Press wrote, “‘This is not a tax on the “wealthy elite”,’ Voogt says. ‘It is a huge burden – and in some cases, a death sentence – on family farms and small businesses.’” (Staff Report, “House passes permanent ‘death’ tax,” Western Farm Press, 12/7/09)

USDA: Family Farms Comprised Between 96.6 And 97.5 Percent Of Farms In North Dakota, As Of March 2015. According to the U.S. Department of Agriculture’s (USDA) 2012 Census of Agriculture, between 96.6 and 97.5 percent of all farms in North Dakota were family farms, as of March 2015. (“Highlights: Family Farms,” Updated March 2015, 2012 Census of Agriculture, U.S. Department of Agriculture (USDA) website, Accessed 10/11/17)

The IRS Collected (Gross) $45,321,000 In Federal Estate Taxes In FY 2016 From North Dakotans. (IRS Data Book, 2016, IRS website)

  • 102 Federal Estate Tax Returns Were Filed In North Dakota With The IRS In FY 2016. (IRS Data Book, 2016, IRS website)
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