Thune, Brady Re-introduce Bill to Repeal Death Tax

From my mailbox:

Thune, Brady Re-introduce Bill to Repeal Death Tax
-Permanently abolishes punitive tax
on family farms, ranches, businesses-

WASHINGTON, D.C.—Senator John Thune (R-S.D.) and Representative Kevin Brady (R-Texas) today re-introduced legislation to permanently repeal the federal estate tax, better known as the death tax, to finally put an end to this punitive tax on family farms, ranches, and businesses upon the death of an owner. Thune and Brady’s bill, the Death Tax Repeal Act of 2013 (S. 1183, H.R. 2429), is nearly identical to legislation introduced in the 112th Congress that garnered the bipartisan support of 223 Representatives and 38 Senators.

“The federal government has no place forcing grieving families to pay a tax on their loved one’s life savings that has been built from income already taxed when originally earned,” said Thune, Chairman of the Senate Republican Conference and member of the Senate Finance Committee. “Currently more than 70 percent of family businesses do not survive to the second generation, and 90 percent of family businesses do not survive to the third generation. According to a study by former CBO Director Douglas Holtz-Eakin, repealing the death tax would create 1.5 million additional small business jobs and would shave almost a percentage point off the unemployment rate. This tax punishes farmers and entrepreneurs for a lifetime of hard work. Death should not be a taxable event, and I will continue to work in Congress to see a permanent end to this unfair tax.”

“What kind of government swoops in upon your death and takes nearly half of the nest egg you’ve spent your entire life building?” asked Brady, chairman of the Joint Economic Committee and a senior member of the House Ways & Means Committee. “The Death Tax remains the number one reason family owned farms and businesses don’t survive to the next generation and it’s time to end this immoral tax once and for all in America.”

Thune and Brady’s bill is supported by the American Farm Bureau Federation, Associated Builders and Contractors, National Association of Manufacturers, National Federation of Independent Business, 60 Plus Association, Americans for Tax Reform, Club for Growth, National Black Chamber of Commerce, International Franchise Association, National Taxpayers Union, American Conservative Union, Family Business Coalition, and many others.

Thune’s bill is cosponsored in the Senate by Senators Kelly Ayotte (R-N.H.), John Barrasso (R-Wyo.), Roy Blunt (R-Mo.), John Boozman (R-Ark.), Saxby Chambliss (R-Ga.), Dan Coats (R-Ind.),  John Cornyn (R-Texas), Mike Crapo (R-Idaho), Mike Enzi (R-Wyo.), Deb Fischer (R-Neb.), Jeff Flake (R-Ariz.) Chuck Grassley (R-Iowa), Orrin Hatch (R-Utah), Dean Heller (R-Nev.), Jim Inhofe (R-Okla.), Johnny Isakson (R-Ga.), Mike Johanns (R-Neb.), Mark Kirk (R-Ill.), Mike Lee (R-Utah), Mitch McConnell (R-Ky.), Jerry Moran (R-Kan.), Jim Risch (R-Idaho), Pat Roberts (R-Kan.), Marco Rubio (R-Fla.), Tim Scott (R-S.C.), Richard Shelby (R-Ala.), Pat Toomey (R-Pa.), and David Vitter (R-La.).

Brady’s bill is cosponsored in the House of Representatives by Representatives John Duncan, Jr. (R-Tenn.), Jim Gerlach (R-Pa.), Tim Griffin (R-Ark.), Bill Johnson (R-Ohio), Sam Johnson (R-Texas), Kenny Marchant (R-Texas), Mike McIntyre (D-N.C.), David McKinley (R-W.Va.), Kristi Noem (R-S.D.), Devin Nunes (R-Calif.), and Austin Scott (R-Ga.).

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25 thoughts on “Thune, Brady Re-introduce Bill to Repeal Death Tax”

  1. I understand that this is Thune’s issue but it’s really something that he should have Kristi Noem push. She’s actually experienced this. She would be the perfect spokesperson.

    1. If Kristi’s family paid estate taxes it was because they had a crappy lawyer and accountant.

      1. No. Many farmers have to take out substantial and expensive insurance policies to partially cover death taxes just so their heirs can afford the taxes when they die. Accountants and lawyers only help so much and can’t make taxes go away.

  2. Report fifty-thousand hard earned dollars of income and you pay taxes.

    But inherit fifty-billion dollars and you pay nothing? After that, your children pay nothing? And your grandchildren pay nothing?

    That idea is just plain stupid. Seriously. And I am a Republican.

  3. Taxes were paid on that money once. That should be enough! But I do remember a certain candidate for office a few years ago who stated in a debate that the govt really needed that death tax money and deserved it essentially. Maybe if the govt tried to live within its means like most of the rest of us do, it wouldn’t need to tax every single thing it can get its grubby little paws on. The gov’t is too, too, too big and that is the entire problem. Cut redundancy, red tape, irrelevant agencies that have outlived their original purpose (if they had a legitimate purpose to begin with in some cases), excess employees, waste and fraud and abuse in freebie programs, etc; but that will never happen in this DC culture. After all, taxes and spending equate with power.

  4. katzy, and the GOP want as much power as they can get, right? So they will continue to tax and spend.

    1. Never thought of it that way. That must be why the state of SD, governed by Republicans, has about the lowest state and local taxes in the nation. Oh, wait, I guess your statement doesn’t make any sense!

      1. The “super majority Republican” legislature & governor started out with a $50 Million budget surplus this year. By the time the session was over, they blew through the surplus, they created numerous new government programs, added about 120 new FTE’s, increased spending by $100 Million, raised 3 different taxes, and greatly expanded government while violating the state constitution to do so.

        South Dakota voters are the ones that get the credit for voting down taxes as they did last election.

    2. Actually, both parties love to tax and spend. First hand out the freebies to get votes, and then tax everything possible to pay for the freebies. Great gig if you can get it!

  5. If the Senate Democrats kill this legislation as expected, they should be Ashamed of therselves! There is no more unjust tax then the “death tax”

  6. Sen. Thune says that “Death should not be a taxable event.” Well, it sure is for those who do not have a huge inheritance coming. So, the rich widow shouldn’t have to pay taxes but the working widow who has no inheritance should?

    And he says that “the inheritance tax hurts small business and farmers”. Really? What’s the exemption? Five million. The first five million is not taxed? Lets not forget that income is always taxed for the typical wage earner. Those who have income from a large inheritance will be just fine paying some taxes like the rest of us.

    1. “(Death)…sure is for those who do not have a huge inheritance coming. So, the rich widow shouldn’t have to pay taxes but the working widow who has no inheritance should?”

      Please explain; this makes no sense. We are talking about inheritance tax here, not income tax (which a poor working widow probably doesn’t pay much, of if, any anyway).

  7. My great great great grandpappy Sam Walton once paid taxes on that 100 billion dollars. I shouldn’t have to pay taxes on that money. Its been paid already.

  8. Democrats have exempted the bottom half of incomes from taxes. (Remember that 47%) Now Republicans have the brilliant idea to exempt the five million dollars and up crowd. Who wins that political demographic game?

    And who is going to be paying the taxes? Oh yea. Me.

    1. Jim, once again the inheritance tax is NOT an income tax. Income tax has already been paid on inheritance income once. And, NO income tax has ever been paid on the income earned by the 47% who pay no income tax.

  9. Thats right. The inheritance tax is not an “income tax”. It is a tax on income. Great big, enormous, gigantic inherited incomes.

    Oh, and Sam Walton. He may never have realized capital gains and thus paid little income tax to begin with. Then his heirs pay nothing. And so on and so on.

    Meanwhile, I have to pay?

    1. The death tax taxes what has been taxed and taxed and taxed again.

      Apparently you think inheriting money is unfair. Perhaps you believe that after a person dies their estate should go to the government to pay for bridges to nowhere and surveillance drones.

      1. Without inheritance taxes, the super-wealthy will pay little or no taxes. On and on, generation after generation. No taxes.

        Do I think thats unfair? Uhh. Gee. Let me think.

        1. Once again the estate tax taxes what has already been taxed several times over.

          You are of course either lying or deluded by stating the “super-wealthy” pay no taxes.

          97% of farmers and ranchers are effected by the death tax, and they aren’t super-wealthy. But the property taxes they pay put everyone elses’ kids through school.

          http://www.foxnews.com/politics/2012/11/16/ranchers-farmers-brace-for-death-tax-impact/

          The progressive belief in redistribution of wealth is in essence theft and predicated on greed and jealousy – coveting what your neighbor owns. And last time I checked stealing from your neighbor was “unfair.”

          1. 97 percent of farmers are affected by the death tax? 97 percent are worth more than five million bucks? Why am I subsidizing them? Our government is “stealing” from me to give to millionaires? My money is being redistributed, Bree.

            And, by the way, some rich people do pay little in taxes because they never realize their gains from investments. Some rich people (farmers too) have their land prices skyrocket. I grew up on a farm. I know.

            You would “steal” from me and give my money to the rich then accuse me of lying for exposing it.

          2. Yes, people like the Walton’s of Walmart fame who have a 100 million dollars each may not pay significant income taxes until all of their remaining stocks are sold. (Which may be after death.) Then, under your plan, their heirs never have to pay either. But I have to pay. Every year.

            100 million = No pay.

            Me = Pay.

            You = Reverse Robin Hood.

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