John Block Reports from Washington

Hello everybody out there in farm country. This radio commentary is brought to you by the Renewable Fuels Association, Wal-Mart Stores, Monsanto, and John Deere. They are all friends, supporters, and allies of a healthy farm economy and prosperous rural America. Thank you.

And now for today’s commentary—

The big worry in the country is all about jobs. Businesses are not hiring? Why aren’t the banks making loans?

One very obvious obstacle to growing the economy is that individuals and businesses are uncertain about the rules of the game. New regulations affecting business are proposed every day. The Environmental Protection Agency could have a major impact as they rush to regulate CO2. Cap and trade is still a big question mark. We have trade agreements that could mean jobs, but will they ever get done? Look at all the jobs lost in the Gulf region with the administration’s moratorium on drilling.

And let’s not forget the failure of the Congress to give us some direction on the “death tax.”

Farmers, ranchers, and small businesses of all kinds are sitting in limbo not knowing what the plan is. In 2009, the estate tax rate was 45 percent with a 3.5 million dollar exemption. This year, there is no tax. That is the case unless the Congress retroactively imposes one. Next year, the tax comes roaring back at a top rate of 55 percent and a 1 million dollar exemption. That will hit 44,000 estates, eight times as many as in 2009.

Estate taxes can destroy a family business. Farmers and ranchers don’t have a lot of money sitting around. To settle an estate, they might have to sell the farm.

What is the congress going to do? We don’t know. With this kind of uncertainty, a lot of businesses are not going to grow or expand until they know what the rules are.

The Family Business Estate Tax Coalition had this to say: “The uncertainty of the current law has left many family-owned businesses and farms guessing about their estate tax liabilities and unable to make prudent business decisions.”

The American Farm Bureau, to its credit, has launched the “Put Death Tax To Rest” campaign. Tell your Members of Congress to get it done.

In closing, I would encourage you to access my website which archives my radio commentaries dating back 10 years and will go back 20 years when complete. Check on what I said back then. Go to www.johnblockreports.com.

Until next week, I am John Block in Washington.