South Dakota’s US Senator, John Thune, was quoted today in a trade industry article (NACS) which discussed how estate tax limitations are set to expire this year, raising estate taxes by 20%:
The estate tax is one of many fiscal issues waiting congressional action by the time the ball drops on 2013, and business and farms groups are hopeful a deal can be struck by midnight on December 31.
Without action by Congress, the estate tax rate will increase to 55% from the current 35%, and the $5 million exemption will lower to $1 million. While groups such as the National Federation of Independent Business (NFIB) and the American Farm Bureau would like to see the estate tax go away altogether, that scenario is not likely to pan out.
Some senators continue to be vocal on this issue, such as Sen. Orrin Hatch (R-Utah), who is calling the estate tax a ?deadweight? that stands in the way of economic growth. Sen. John Thune (R-SD) has said that lawmakers from agricultural states are deeply concerned about what could happen if the current estate tax rate increases.
?It?s possible, I suppose, that when you get to this pileup at the end of the year and you have all this other expiring tax law, that this thing sort of falls by the wayside,? Thune told the newspaper, adding, ?If we snap back to that level or move backwards in terms of policy, I think it will be very, very harmful to the economy.?
Thune is leading a bill that would permanently repeal the estate tax, which has support from many Senate Republicans but not one Democrat. In the House, a similar bill by Rep. Kevin Brady (R-TX) has support from nearly half of the chamber?s Republicans and a handful of Blue Dog Democrats.