U.S. Senate Majority Leader John Thune (R-SD) was among 45 senators who introduced a bill on Feb. 13 that would repeal the federal estate tax.
The Death Tax Repeal Act, S. 587, would end that estate tax, which is a tax on the individual’s right to transfer property upon their death. It consists of an accounting of everything the person owns or has certain interests in at the date of death.
“Family farms and ranches play a vital role in our economy and are the lifeblood of rural communities in South Dakota,” Thune said. “Losing even one of them to the death tax is one too many. It’s time to put an end to this punishing, burdensome tax once and for all so that family farms, ranches and small businesses can grow and thrive without costly estate planning or massive tax burdens that can threaten their viability.”
U.S. Sen. Mike Crapo, chairman of the Senate Finance Committee, also spearheaded the initiative.
“Small businesses are the lifeblood of Idaho’s economy, and family farmers, ranchers and entrepreneurs have often worked lifetimes to grow their businesses,” Crapo said. “The death tax can be a devastating blow to American families who want to pass down their farm or small business to the next generation. It’s time to permanently provide relief from this unfair tax.”
The bill is supported by more than 190 members of the Family Business Coalition and more than 105 members of the Family Business Estate Tax Coalition. The coalition includes the National Federation of Independent Business, the National Restaurant Association, the National Association of Home Builders, and the U.S. Chamber of Commerce.
“South Dakota’s farmers and ranchers should not have to worry that their business will die with them because of the death tax,” Scott VanderWal, president of the South Dakota Farm Bureau, said. “I thank Senator Thune for leading this important legislation in Congress and for his unwavering commitment to protect agricultural producers from this crippling tax burden and costly estate planning expenses.”
Companion legislation was introduced in the U.S. House of Representatives by U.S. Rep. Randy Feenstra (R-IA).