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The U.S. Senate is rushing to extend the current estate tax rate as it plans for its reappearance in 2011.

"Current estate tax allows a person inheriting an estate less than $3.5 million to be exempt," said Adrian Schulze Secretary & Treasurer of the Blanco County Farm Bureau. "If the Senate does not meet their end of the year deadline, a permanent estate tax would be issued in 2011 that could devastate the continuation of farm and ranch enterprises."

Unless a new law is passed, exemption levels would lower to $1 million per person and a 55 percent tax rate.

HR 3905, passed by the House, proposes the current $3.5 million covered under estate tax laws gradually increase to $5 million over the next 10 years. Many argue that estate taxes should cease to exist because it hurts the traditional family farm.

"Family operated farms produce around 86 percent of our nation’s agricultural products," said Schulze. "Taking this away would be detrimental to our already struggling economy."

The Senate faces a Dec. 31 deadline to address the issue.

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