On behalf of the millions who are the American forestry community, the undersigned strongly encourage you to persevere in your efforts to reform the estate tax with criteria at a tax rate not to exceed 35 percent and at an exemption indexed to inflation not below $5 million on individuals. The estate tax provides a disincentive for heirs to retain their family forest businesses or to continue to sustainably manage their forests even if not sold.

The USFS Southern Research Station and its collaborators recently released the tax planning guide called "Estate Tax Planning: What Will Become of Your Timberland?" This is the updated version of one of the most widely used tax publications for private forest owners. The electronic version is available at: http://www.srs.fs.usda.gov/pubs/gtr/gtr_srs112.pdf.

On behalf of the National Association of State Foresters, I am writing to encourage your support for the Timber Tax Act of 2005 (H.R. 3883). Tax policy has important impacts on forest management, as it influences the decisions made by the forest industry. Recent research conducted by PricewaterhouseCoopers found that the U.S. has an effective tax rate that is 16 percent above the median of other countries. Policy that would improve U.S. competitiveness in a global market is essential.

NIPF landowners have expressed their desire for tax incentives as a top priority to encourage voluntary financial investing in forest stewardship management during the National Conference on Forest Stewardship in Nebraska City, NE (April 1994. Likewise, the National Forest Owners Association (NFOA), has lobbied for such tax incentives.