Source: United States Senator for Nebraska Deb Fischer
LINCOLN, NEB. – U.S. Senator Deb Fischer (R-Neb.) recently joined 40 of her colleagues in reintroducing legislation to permanently repeal the federal estate tax, more commonly known as the death tax. The Death Tax Repeal Act would end this purely punitive tax that has the potential to hurt family-run farms, ranches, and businesses as the result of the owner’s death. U.S. Senator John Thune (R-S.D.). introduced the legislation.
“It’s wrong to tax hardworking Americans twice – once when they earn their money, and again when they give it away. The death tax is unfair, and has a disproportionate impact on Nebraska’s small businesses and ag producers. Many Nebraskans have spent decades working to grow their businesses in the hope of passing them on to the next generation. I’m proud to join Senator Thune to introduce the Death Tax Repeal Act to finally end this misguided tax once and for all,” said Senator Fischer.
“No cattle producer should ever be forced to sell their family’s farm or ranch to pay a tax bill due to the death of a family member. Repealing the death tax is a commonsense way to keep the farm or ranch in the family. As a land-based, capital-intensive industry, most cattle producing families are asset-rich and cash-poor, with few options to pay off tax liabilities. It is unacceptable that some families are forced to sell off land, farm equipment, parts of the operation, or the entire ranch to pay the estate tax. We need a tax code that promotes the continuation of family-owned businesses instead of breaking them up,” said Todd Wilkinson, president of the National Cattlemen’s Beef Association.
Background:
Although the final version of the Tax Cuts of Jobs Act (TCJA) in 2017 did not repeal the death tax, the law effectively doubled the individual estate and gift tax exclusion to $10 million ($12.9 million in 2023 dollars) through 2025, which prevents more families and generationally-owned businesses from being affected by this tax. The increased exclusion expires at the end of 2025, which increases uncertainty and planning costs for family-owned businesses, farms, and ranches.
This legislation is supported by more than 150 members of the Family Business Coalition and 111 members of the Family Business Estate Tax Coalition, which includes the American Farm Bureau Federation, the National Cattlemen’s Beef Association, the National Federation of Independent Business, the Associated General Contractors of America, the Policy and Taxation Group, the National Association of Home Builders, and the National Association of Manufacturers.
In addition to Sens. Fischer and Thune, the legislation is cosponsored by U.S. Senators Mitch McConnell (R-Ky.), John Barrasso (R-Wyo.), Marsha Blackburn (R-Tenn.), John Boozman (R-Ark.), Mike Braun (R-Ind.), Katie Britt (R-Ala.), Ted Budd (R-N.C.), Shelley Moore Capito (R-W.Va.), John Cornyn (R-Texas), Tom Cotton (R-Ark.), Kevin Cramer (R-N.D.), Mike Crapo (R-Idaho), Ted Cruz (R-Texas), Steve Daines (R-Mont.), Joni Ernst (R-Iowa), Lindsay Graham (R-S.C.), Chuck Grassley (R-Iowa), Bill Hagerty (R-Tenn.), Josh Hawley (R-Mo.), John Hoeven (R-N.D.), Cindy Hyde-Smith (R-Miss.), Ron Johnson (R-Wis.), John Kennedy (R-La.), James Lankford (R-Okla.), Mike Lee (R-Utah), Cynthia Lummis (R-Wyo.), Roger Marshall (R-Kan.), Jerry Moran (R-Kan.), Markwayne Mullin (R-Okla.), Pete Ricketts (R-Neb.), Jim Risch (R-Idaho), Mike Rounds (R-S.D.), Marco Rubio (R-Fla.), Eric Schmitt (R-Mo.), Rick Scott (R-Fla.), Tim Scott (R-S.C.), Thom Tillis (R-N.C.), Tommy Tuberville (R-Ala.), and Roger Wicker (R-Miss.).
Click here to view the legislation.
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