Kip Tom

INDIANAPOLIS — President Donald Trump’s visit to Indianapolis last week included a special invitation to Kip Tom, of Tom Farms, Leesburg. Not only did Tom get to attend the speech, which focused on the GOP tax reform plan, but he met with Trump briefly prior to the tax reform presentation.

“I’ve been an advocate for reparation tax,” Tom said, noting he talked with Trump, for approximately 15 minutes, about repealing the death tax as someone affected by that tax. Tom was also interviewed by a number of national television stations about the death tax.

Trump recognized Tom and Tom Farms, during his speech pointing out the heritage of Tom Farms, a family operation for 187 years, could “come to an end because of the death or estate tax. It could make it impossible to pass that legacy to his wonderful family … .”

Tom stated when talking with Trump he noted the inheritance tax is 1 percent of the total budget and its repeal would result in a budget neutral. “A lot of small businesses pass from generation to generation,” like his family farm. When in transition to another generation, if it is valued above certain levels, a 40 percent tax is imposed. “They have to sell off assets, downsize. It’s sad to see family farms getting slowed down or get out. He (Trump) gets that.”

Tom noted he also spoke about how farming and small businesses are in the slow growth stage economically because of the taxes. “Something needs to be done to get businesses to reinvest, expand capital and provide sturdy jobs.”

Further, Tom stated these taxes inhibit a business. Taxes are already paid when assets are reinvested in the farm or business, then have to be paid again when it is passed on to the next generation through the inheritance or death tax. “It’s tough to make ends meet. They need a tax break,” Tom said.

During an interview with one television station, Tom noted the structural change in agriculture during the last 40-50 years. He noted his family started with a 120 acre sharecrop farm. Today the family has a substantial operation in over seven counties in northern Indiana, a small operation in Argentina, with a number of family members involved in the operation and 30 employees. The family business or farm has focused on growth, reinvested capital. “We know there’s a challenge to feed the global population and we want to make sure we’re one of those farmers. We’ve invested to grow our operation.”

“Our goal is to transition the family business or farm, to generation to generation and make sure everything invested in the past continues to have momentum and velocity to go into the future. Any time you pay a large tax, the 40 percent in front of us, it slows a business like ours down, cripples our growth along the way.”

Tom noted the provisions of the tax proposal will help small businesses, as it will reduce taxes to 25 percent, and help “invest in the future … put capital back in the business, to continue to grow the business for the future.”

Tom was one of three Indiana businessmen chosen by Trump who would benefit from tax reform and help make his case for tax reform. The other two individuals were John Gannon, owner of Custom Wood Fencing, Greenfield; and Aaron Williams, director of field marketing and analyst relations at Topcoder, Zionsville.