Earlier today, Senate Majority Leader Mitch McConnell (R-KY) and Senators Chuck Grassley (R-IA) and John Thune (R-SD) reintroduced a bill that would repeal the federal estate tax.
All three are members of the Senate Finance Committee.
.@SenJohnThune introduces legislation to permanently repeal estate tax, with support from McConnell & Grassley
— Ylan Q. Mui (@ylanmui) January 28, 2019
Republicans have long argued that the estate tax is a form of double taxation. The 2017 Tax Cuts and Jobs Act (TCJA) did not repeal the death tax but doubled the exclusion (approximately $11 million for individuals and $22 million for couples, depending on inflation) through 2025.
Thune posted a press release on his website:
“Although we made great progress during the Tax Cuts and Jobs Act negotiations, the death tax still remains an onerous and unfair tax that punishes hard-working families,” said Thune. “Oftentimes, family-owned farms and ranches bear the brunt of this tax, which threatens families’ agricultural legacies and makes it difficult and costly to pass these businesses down to future generations. This way of life is integral to so many South Dakota families, which is why I remain committed to removing roadblocks for these family businesses, and we can start by repealing the death tax once and for all.”
“With Senator Thune’s leadership, I am proud to cosponsor this legislation to finally end the unfair death tax,” said Senate Majority Leader Mitch McConnell. “It’s the government’s final insult to force grieving families to visit both the undertaker and the IRS on the same day. Our historic tax reform legislation provided major relief from this burden to many Kentuckians – especially those in farming and rural communities. Now is the time for our Democratic colleagues to join us to take the next step to repeal the death tax once and for all.”
“Congress ought to do everything possible to encourage family enterprises to get next generations involved and keep the doors open for business,” said Finance Committee Chairman Chuck Grassley. “It’s getting harder all the time to keep a farm or small business in the family from one generation to the next. The estate tax doesn’t serve any purpose except forcing family farms and family-run businesses to waste precious capital on costly tax planning and in too many cases, paying taxes on income or property that have already been taxed once. Rather than sending even more taxes to Washington, D.C, it would be far better to allow family farms to keep this money so they can invest in the rural communities they are located in to create new opportunities.”
In addition to Thune, McConnell, and Grassley, the bill is cosponsored by U.S. Sens. Lamar Alexander (R-Tenn.), John Barrasso (R-Wyo.), Marsha Blackburn (R-Tenn.), Roy Blunt (R-Mo.), John Boozman (R-Ark.), 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), Deb Fischer (R-Neb.), Cory Gardner (R-Colo.), John Hoeven (R-N.D.), Cindy Hyde-Smith (R-Miss.), James Inhofe (R-Okla.), Johnny Isakson (R-Ga.), John Kennedy (R-La.), Jerry Moran (R-Kan.), David Perdue (R-Ga.), Jim Risch (R-Idaho), Pat Roberts (R-Kan.), Mike Rounds (R-S.D.), Marco Rubio (R- Fla.), and Todd Young (R- Ind.).
The views expressed here are those of the author and do not represent those of any other individual or entity. Follow Sarah on Twitter: @sarahmquinlan.