Press Release: Rounds Cosponsors Bill to Repeal Death Tax

Rounds Cosponsors Bill to Repeal Death Tax

WASHINGTON—U.S. Sen. Mike Rounds (R-S.D.) today joined U.S. Senator John Thune (R-S.D.) and 25 colleagues in introducing legislation to permanently repeal the federal estate tax, which will bring tax relief to farmers, ranchers and small business owners.

“Currently, 70 percent of family businesses do not survive to the second generation, in part because of this additional tax which may force the sale of a family business upon the death of one of the owners,” said Rounds.

A similar bill was introduced in the House of Representatives with more than 100 cosponsors.

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17 Replies to “Press Release: Rounds Cosponsors Bill to Repeal Death Tax”

  1. jimmy james

    You just get to Washington and, instead of trying to reduce my tax burden, you have to attempt to save George Soros and Charles Koch some cash. Perhaps you did not notice that they have quite a bit already. If they do not pay estate taxes, they may pay almost no tax at all. Most large estates are in investments that do not pay tax until gains are reported.

  2. enquirer

    rounds backing this means it’s a tactical move, more than a serious effort. rounds knows well what reducing inheritance taxes did to the south dakota annual budget.

    tactically, the republicans can watch each carefully placed bill be viciously flamed one at a time by the democrats, or they can ladle on so much red meat that the dems can’t flame it all fast enough. i want the congressional dems to get political carpal tunnel in their kneejerk knees.

  3. jimmy james

    Thune is the prime sponsor of the estate tax repeal even though he knows the truth about it. He knows that the largest estates are created by stocks, real estate and other investments that have not been taxed on their appreciation. This is not about double taxation. These estates may not pay significant taxes even one time, much less two or three.

    Now, he wants to repeal the estate tax so the next generation from the wealthiest families will avoid taxes as well. We are talking about millionaires and even billionaires here. He knows all of this. Senator Rounds does as well.

    I know it sounds great to get rid of the “death tax”. But the truth is that its repeal would create the most unfair system of taxation imaginable. The wealthiest would pay next to nothing in income taxes for hundreds of years. But you will. If you make just thirty or forty thousand a year, you will.

    Senator Thune and Senator Rounds. What are you thinking?

  4. Troy Jones

    Jimmy James,

    Your statement above these estate will not pay income taxes is blatantly false.

    They will not pay a tax on the transfer of assets to heirs. Big difference.

    I agree with your position but making your case with false assertions hurts our position.

  5. jimmy james

    I said: “These estates may not pay SIGNIFICANT taxes even one time.”

    Appreciation of stock or land values is a form of income whether it is sold for a recognized gain or held. No tax when held.

    I do not understand your objection.

  6. Troy Jones

    Jimmy James: “The wealthiest would pay next to nothing in income taxes for hundreds of years.”

    This is absolutely false.

    1. jimmy james

      Of course the wealthiest among us will pay a ton of taxes (income, sales tax etc.) in dollar terms but not high at all in percentages. I do not appreciate paying higher rates than billionaires.

      I would not object to paying a higher rate if I were a billionaire.

  7. jimmy james

    I said the “wealthiest”.

    I inherit a billion dollars. No tax. I buy three homes and a couple of boats and keep $100 million on hand for spending money. The rest ($800 million) goes into investments and stays there for the kids. That grows to 3 Billion in twenty five years when I die.

    What is my income tax rate relative to that growth in value?

  8. Troy Jones

    Jimmy James:

    There is only one issue involved in the death tax. You keep mentioning issues unrelated directly and even indirectly.

    The issue of a death tax is whether there should be a “transfer” tax when assets are transferred from the deceased to heirs.

    Income tax, sales tax, excise tax, use tax, property tax, capital gains tax, and all other taxes aren’t impacted whether we have a death tax or not.

    Your rhetoric comes across very strongly as class warfare/class envy, you aren’t very informed, or are so emotional you are also irrational. Just saying.

    1. jimmy james

      That last paragraph suggests which of us is emotional. You want to argue a narrow line of thought. Fine. I am more interested in overall tax equity.

      Why don’t you argue the points I made and knock off the insults.

  9. jimmy james

    Troy: “Your rhetoric comes across very strongly as class warfare/class envy, you aren’t very informed, or are so emotional you are also irrational. Just saying.”

    Classy.

  10. Troy Jones

    I can’t even follow your points. All I see is class envy type arguments and emotion. If saying what I see is insulting, you are too sensitive.

    Income tax is paid when income is earned. Applies to the rich and poor but rich pay a higher rate. Elimination of the death tax doesn’t affect this at all.

    Capital gains tax is paid when assets are sold. Applies to the rich and poor alike. Elimination of the death tax doesn’t affect this at all.

    Current death tax is paid when a person dies. Applies only to the rich. Poor don’t have estates for which there is a tax liability. Elimination of the death tax treats the rich and poor alike.

    Those are facts. If you think the tax structure is insufficiently progressive, that is your opinion. My opinion is different.

  11. jimmy james

    Lets make this real simple. Inherit a billion dollars and pay no tax on that income. Work hard for fifty-thousand dollars and you’ll pay thousands in taxes. This is what they want.

    And you call ME “irrational”?

  12. Troy Jones

    Simple and false.

    Inheritance isn’t income. The person who has a billion dollars already earned that money and paid taxes on it.

    I support a death tax. I also support rational arguments for it. Not class envy (inherit a billion vs. work for it).

    1. jimmy james

      Is it fair for Paris Hilton to inherit her great-grandfather Conrad’s fortune without paying any tax on it? Or Yankee owner George Steinbrenner’s 13 grandchildren? This is exactly what happens when there is no estate or inheritance tax on the bequests of the very rich.

      Opponents like to say the estate tax isn’t fair because it’s a “double” tax—hitting assets that have already been taxed before. Of course, we all pay double or even triple taxes: both income and payroll taxes on our wages, and sales taxes when we spend our earnings. But, for the wealthy, that’s often simply not the case. Social Security taxes stop at just over $100,000 a year. And if you hold assets until your death, you don’t pay capital-gains taxes on them. So, the gain in the value of George Steinbrenner’s Yankees never faced a tax hit.

      What’s more, much of the money that the very wealthy leave behind hasn’t been heavily dunned by income taxes. The top income earners pay strikingly low income-tax rates, since they get a big chunk of that income from sources that either have low tax rates—such as capital gains—or aren’t taxed at all, such as interest on state and local-government bonds.

      Indeed, it is something of a mystery why a tax that affects only the richest 1% of our citizens, encourages charity and places no burden on the vast majority of Americans should be repealed. Perhaps it should be beyond surprise that the interests of the wealthy triumph in today’s politics.

      (The above is not from ol’ Jimmy James. That would be the Wall Street Journal’s Michael Graetz)

  13. jimmy james

    Inheritance is not income? Give me a billion dollars and I’ll call it whatever you want, Troy.

    And pointing out that average workers would pay taxes, while this billion dollar heir doesn’t, is not class envy. Its the truth. You can call it anything you want but it will still be the truth.