U.S. Rep. Randy Feenstra (R-IA) introduced legislation on Jan. 18 to repeal taxes on the transfer of property from a deceased family member to their heirs, commonly called the “death tax.”
The bipartisan legislation, the Death Tax Repeal Act, H.R. 7035, was supported by 161 other members of Congress, Feenstra’s office said, and by 194 organizations across the country. The bill would permanently repeal the tax which impacts small businesses and farms owned and operated by individuals and families.
“The death tax represents double taxation at its worst. Iowa families grieving the loss of a loved one should not face an enormous tax bill from the federal government just to continue the family tradition of farming or keep their small business open and operational,” Feenstra said. “By fully eliminating the death tax, we can keep China away from our farmland, allow family farms and small businesses to succeed, and encourage the next generation of Iowa farmers and business owners to plant their roots in rural Iowa, support our main streets, and contribute to our economy.”
Feenstra said that more than 99 percent of the country’s 2 million farms and ranches, and more than 95 percent of small businesses would benefit from the legislation and allow multigenerational businesses to continue to support families without taxing the family after the death of a family member.
“Taxing small business owners at death is wrong. Repealing the death tax will help to keep small family businesses in the family and prevent them from being acquired by huge competitors,” said Jeff Brabant, vice president of Federal Government Relations at the National Federation of Independent Business.
“Family businesses across the country are still struggling to keep their doors open and keep their workers employed while this administration proposes taxing unrealized gains, increasing the estate tax burden, and eliminating step-up in basis,” Palmer Schoening, chairman of the Family Business Coalition, said. “Rather than proposing more job-killing tax increases, Congress should be doing everything possible to encourage small business hiring.”