Question of the day
Thursday, Apr 10, 2025 - Posted by Rich Miller
* Pantagraph…
In remarks at an event kicking off the annual lobby day for the state’s agriculture industry in the Illinois Capitol, state Sen. Andrew Chesney, R-Freeport, expressed delight in the generally bipartisan nature of legislative initiatives pertaining to farmers.
“In the (Senate Agriculture Committee), we’ve done a pretty good job, in a bipartisan way, of working together,” Chesney said.
But with Democratic Gov. JB Pritzker seated in front of him, Chesney turned to a point of contention: Illinois’ status as one of 12 states with an estate tax.
“You cannot say you support family farms and allow a regressive estate tax to be in place in the state of Illinois,” Chesney said.
Chesney then urged Pritzker to support a stalled legislative effort by state Rep. Sharon Chung, D-Bloomington, and state Sen. Dave Koehler, D-Peoria, to raise the estate tax exemption for family farms from $4 million to $6 million.
* Prizker briefly spoke with Chesney and was asked about their conversation and about the two aforementioned bills…
Q: A big issue facing family farmers is the estate tax. Last year, there was a proposal that would raise the threshold, didn’t get across the finish line and get in the revenue bill. Do you anticipate that being part of budget discussions this year?
Pritzker: I said actually to Senator Chesney as he came off the stage that you know, happy to talk about it, he just has to tell us how we’re going to pay for it. Couple-few hundred million dollars of revenues at the state. So, you know, if he’s able to come with his ideas about how to pay for it, then we ought to talk.
Q: Have you talked to Representative Chung or Senator Koehler about their specific proposal?
Pritzker: Not specifically about their proposal. I mean, in general, we’ve talked, the two of, I should say, one on one, each of them I have spoken with about this proposal in general, not the specifics of the bill. And again, it’s just a question of how do you, again, as I’ve said, and I think Isabel Miller asked me yesterday about has anybody come to you with cuts? I’m happy to discuss how we might change the the balanced budget that I introduced. But again, you’ve got to just figure out how to make the numbers work.
There is a strong feeling among some Democrats, particularly in the suburbs, who think more people Illinois leave because of the estate tax than most other reasons.
* From Rep. Chung’s bill synopsis…
Provides that, for the purposes of calculating the State Death Tax Credit, those estates are subject to an exemption of $6,000,000 (rather than an exclusion amount of $4,000,000), which shall be deducted from the net estate value after the net estate value is computed in accordance with the Act. Provides that the exemption shall be adjusted each year according to the increase in the Consumer Price Index.
* The Question: Do you support raising the estate tax exemption to $6 million? If so, how would you pay for it? If not, why?
- @misterjayem - Thursday, Apr 10, 25 @ 12:59 pm:
No.
If your estate is bigger than $4M, then you can afford to do some estate planning.
Don’t expect the legislature to do it for you.
– MrJM
- Bob - Thursday, Apr 10, 25 @ 1:05 pm:
@misterjayem
Few are worse at personal responsibility than the personal responsibility crowd.
- H-W - Thursday, Apr 10, 25 @ 1:10 pm:
Interesting question.
First, it is not a regressive tax, if the first $4 or $6 M is exempt. I suppose you could argue the tax is “curvilenear” in that those in the midrange pay more, but I get the impression the word “regressive” is more of a political banner than anything else. Technically, that word is false.
As to raising the threshold and paying for it, I would ask is it possible to both raise the floor and at the same time find a way to lower the ceiling? Is it possible to impose a higher tax rate on the largest farms? Alternatively, could agribusinesses be taxed at a higher rate?
I am only thinking in terms of balancing the budget within the industry, rather than tapping into external revenue streams which are currently under threat already.
If by regressive, some are suggesting richer farmers pay less than the share paid by medium and small farm operations (which is implied with the use of the word), the solution seems apparent according to the word “regressive.” If larger farm operations are willing to pay more inheritance tax when they pass on their holdings, then it would be reasonable to raise the estate tax exemption to $6M.
If not, then I am not sure how to afford increasing subsidies (tax exemptions) for smaller farmers in the current economic climate.
- Excessively Rabid - Thursday, Apr 10, 25 @ 1:19 pm:
There are a lot of very weird features to the Illinois estate tax, but the least they could do is update the threshold for inflation. I’m firmly in the camp that thinks this tax is costing the state money. If you think people should do estate planning, they do. They take their money and move to one of the forty or so states where this doesn’t happen. They take with them a significant amount of income, real estate, and sales taxes.
- Jerry - Thursday, Apr 10, 25 @ 1:19 pm:
If we’re going to increase the Estate Tax Socialist Entitlement Program, it’s got to be paid for somehow. So, no. It is the Individual Responsibility of the farm owner to prepare for this.
- CA-HOON - Thursday, Apr 10, 25 @ 1:34 pm:
I admit I don’t know a whole lot about farm estate planning, but depending on the land would the farm itself (including all operating equipment and any livestock or produce not already sold to market) not sometimes easily exceed $4m?
I would think the state might have an interest in seeing family farms stay in the family, so if it’s possible why not write an exemption that property will not be subject to estate tax if it is retained in the family, with conditions that it not be sold or leased or whatever for a certain. If it is sold outside the family, the estate tax kicks in. Seems fair to me.
If farmers are worried about being able to leave the farm to their children, that is something to talk about and possibly accommodate them for, but if they’re just talking about liquidating the assets for cash then no, I don’t think it needs to be raised at all.
- Give Us Barrabbas - Thursday, Apr 10, 25 @ 1:34 pm:
Farm economics can be pretty byzantine because of how the land is owned or rented, the subsidies and loans, and how much of the operation is paper wealth versus tangible assets. This only gets more complex with corporate factory farming and land speculation. If there was an easy one size fits all solution it would already be implemented. The ag lobby has not yet made a convincing case for changing the tax rate or the ceilings. It is an easy excuse to say no dice until you point to a replacement revenue source but it’s also true. Every constituency wants to offload the cost somewhere else, on someone else, who has less pull. It’s human nature.
- Donnie Elgin - Thursday, Apr 10, 25 @ 1:44 pm:
Yes - if we can’t eliminate it, then raise it. Remeber the journey every dollar goes on - you earn it - it is subject to income tax and payrol tax - you spend it, it is supbect to sales tax - you sav it and the interest is taxed, you invest it and it is subject to capital gain taxes- corporations that you invest in pay income taxes, and finally when you have invested in either stocks or land over a arbitrary amount - they sock it to you when you die. Additionally, many of the folk subjects to this tax are the children of farmers who may be just getting by. The value of land is illiquid, and then they are forced to sell after dad dies.
- DuPage Saint - Thursday, Apr 10, 25 @ 1:50 pm:
They get tremendous real estate tax breaks in the farmland. Tax that as a commercial property and then sure raise the estate tax. If they have that much of an estate they can do some planning. If they need help with estate planning ask the McKaskeys who Virginia used
- Anyone Remember - Thursday, Apr 10, 25 @ 1:55 pm:
===If it is sold outside the family, the estate tax kicks in.===
The late Neil Harl, Iowa State University agricultural economics professor, disputed the notion estate taxes were “taking” family farms. A non-farm businesses worth $4M would be considered negligent for not doing estate planning - why should agriculture be different?
- anon2 - Thursday, Apr 10, 25 @ 2:13 pm:
Sen. Chesney calls it the “regressive” estate tax
Why is it unreasonable for someone who inherits an estate worth $4 million to $5.99 million to pay taxes on it? How is that regressive?
- New Day - Thursday, Apr 10, 25 @ 2:16 pm:
Yes. Takes away one reason for the rich to move to no-tax states.
And no, I don’t have to pay for it. It’s 2025. We don’t do that anymore.
- JS Mill - Thursday, Apr 10, 25 @ 2:21 pm:
No. Pay your taxes.
=Takes away one reason for the rich to move to no-tax states.=
Let them go. I am tired of people wanting something for nothing.
- Alice Childress - Thursday, Apr 10, 25 @ 2:24 pm:
It’s just my opinion: but estate taxes are ridiculous. Tax on already taxed monies. A nation/state of tax. Illinois has miserably failed to manage their budget for decades. And yes. My family is in farming and yes they moved (even after they original estate planned in Illinois) to lower the burden passed to family.
- Grandson of Man - Thursday, Apr 10, 25 @ 2:51 pm:
No. The estate tax was cut by half federally. Republicans at this time may extend these tax cuts even further, while two very wealthy people are firing federal workers by the thousands. Pay for it and we’ll talk would be the right answer, with no cuts.
- Blue Dog - Thursday, Apr 10, 25 @ 3:19 pm:
the estate tax is not high enough.having ti sell property or borrow money to pay yhe estate tax is wrong.. if you want to do something lower or reduce ag subsidies. this will lower the per acre price of the ground.
- Excitable Boy - Thursday, Apr 10, 25 @ 3:25 pm:
No, lower it. Resources shouldn’t get to be held by one family forever without being taxed between generations.
- Commoner - Thursday, Apr 10, 25 @ 3:28 pm:
Illinois is one of 12 States that is taxing farm estates, while also being one of the states with the heaviest tax burdens and least efficient governments.
It’s never enough for Illinois big gov proponents.
Taxes should be cut across the board, including this tax.
A smaller and more efficient government is a better government.
- Anyone Remember - Thursday, Apr 10, 25 @ 4:07 pm:
===Tax on already taxed monies.===
The British tried to come up with a system so money would only be taxed once. All they could come up with was … taxing improvements to property (NOT land, just the “improvements”). Let me know where and when anyone would try to sell that in a town hall meeting - I’d pay good money to watch that … .
- Perrid - Thursday, Apr 10, 25 @ 4:13 pm:
I would chuck Rep Chung’s bill in the trash just for calling it the death tax. People calling it that aren’t serious.
At that point, YOU are dead. Your inheritors are the ones who lose out. They have to pay taxes on what they’re getting, just like everyone else.
I’m inclined to keep it where it is. I’m not dead set on that, we can talk about taking inflation into account since it was set or whatever, but in general I don’t think people who are set to inherit millions of dollars need tax cuts.
- Cool Papa Bell - Thursday, Apr 10, 25 @ 4:22 pm:
=Illinois is one of 12 States that is taxing farm estates,=
From the Illinois Farm Bureau’s fact sheet on the Family Farm Preservation Act, they show that IF a farm owned 1300 acres of land they would owe $2,300,000 in estate taxes.
That sounds like a lot. What they don’t tell you is that land could easily be worth more than $20,000,000.
So no. I do not support this for farms or anyone. The ole’poor farmer is a figment of American lore at this point.
- Excitable Boy - Thursday, Apr 10, 25 @ 5:51 pm:
- The ole’poor farmer is a figment of American lore at this point. -
Has been for a long, long time, along with the concept of “family farms”. Family farms these days are corporate farms with a family name.
- WK - Thursday, Apr 10, 25 @ 5:58 pm:
It would be helpful if people had a reasonable clue about farm economics. Good ground in Central Illinois is selling for $20k per acre. If you had 400 acres, it would be worth $8 million.
Sounds like a lot, except that 400 acres wouldn’t make $80k per year. You think you can make the loan payment to cover $400k in estate taxes while paying your bills on less than $80k in income per year?
- anon2 - Thursday, Apr 10, 25 @ 6:55 pm:
=Tax on already taxed monies=
Not on capital gains. If the
property was never sold, then capital gains escape taxes for generations. This simply increases the concentration of wealth in the 1%.
- I.T. Guy - Thursday, Apr 10, 25 @ 7:42 pm:
= particularly in the suburbs, =
Support raising it. The suburbs don’t worry about farmers. They worry about middle-class residents who through a combination of diligent saving, investments, and life insurance, can trip the threshold. It needs to be adjusted.
- J - Thursday, Apr 10, 25 @ 8:37 pm:
Years ago Senator Richard Lugar said farmers best crop is what they harvest from Washington. They have many other names for it but farmer welfare is legendary, wastefull, and distorts the market. The last true capitalists? Sure.
- Huh? - Thursday, Apr 10, 25 @ 9:19 pm:
“A smaller and more efficient government is a better government.”
Prove it. That is the misguided thinking of a “businessman” attempting to apply “business principles” to government.
That is a failure to understand that the purpose of government is to provide services to the residents living within the area of the governmental jurisdiction.