Thune Leads Effort to Permanently Repeal the Death Tax
“I will continue to do everything in my power to remove these roadblocks for family businesses and repeal the death tax once and for all.”
WASHINGTON — U.S. Sen. John Thune (R-S.D.), ranking member of the Subcommittee on Taxation and Internal Revenue Service Oversight, today led 40 of his Senate colleagues, including Republican Leader Mitch McConnell (R-Ky.) and Mike Crapo (R-Idaho), ranking member of the Senate Finance Committee, in reintroducing legislation to permanently repeal the federal estate tax, more commonly known as the death tax. The Death Tax Repeal Act would end this purely punitive tax that has the potential to hit family-run farms, ranches, and businesses as the result of the owner’s death.
“Agriculture is the backbone of South Dakota’s economy,” said Thune. “For years I have fought to protect farm and ranch families from the onerous and unfair death tax. Family-owned farms and ranches often bear the brunt of this tax, which makes it difficult and costly to pass these businesses down to future generations. I will continue to do everything in my power to remove these roadblocks for family businesses and repeal the death tax once and for all.”
“For far too long, the death tax has wreaked havoc on farm families and small businesses across Kentucky. The burden of this unfair and punitive tax can be devastating for families who only want to pass down their hard-earned livelihoods to the next generation. Washington Democrats need to recognize the economic damage they’ve inflicted and join Republicans in ending this harmful tax,” said McConnell. “I’m proud to stand with Senator Thune for repealing the death tax for good. Kentuckians must be allowed to build upon the legacies of their family farms without fear of financial ruin.”
“High federal taxes should not prevent farmers, entrepreneurs and savers – who have worked a lifetime to leave something to the next generation – from passing their business to their children,” said Crapo. “We need to permanently repeal this punitive tax, and I thank Senator Thune for leading this years-long effort.”
“No cattle producer should ever be forced to sell their family’s farm or ranch to pay a tax bill due to the death of a family member,” said Todd Wilkinson, president of the National Cattlemen’s Beef Association and South Dakota cattle producer. “Repealing the death tax is a commonsense way to keep the farm or ranch in the family. As a land-based, capital-intensive industry, most cattle producing families are asset-rich and cash-poor, with few options to pay off tax liabilities. It is unacceptable that some families are forced to sell off land, farm equipment, parts of the operation, or the entire ranch to pay the estate tax. We need a tax code that promotes the continuation of family-owned businesses instead of breaking them up.”
The legislation is cosponsored by U.S. Sens. John Barrasso (R-Wyo.), Marsha Blackburn (R-Tenn.), John Boozman (R-Ark.), Mike Braun (R-Ind.), Katie Britt (R-Ala.), Ted Budd (R-N.C.), Shelley Moore Capito (R-W.Va.), 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.), Lindsay Graham (R-S.C.), Chuck Grassley (R-Iowa), Bill Hagerty (R-Tenn.), Josh Hawley (R-Mo.), John Hoeven (R-N.D.), Cindy Hyde-Smith (R-Miss.), Ron Johnson (R-Wis.), John Kennedy (R-La.), James Lankford (R-Okla.), Mike Lee (R-Utah), Cynthia Lummis (R-Wyo.), Roger Marshall (R-Kan.), Mitch McConnell (R-Ky.), Jerry Moran (R-Kan.), Markwayne Mullin (R-Okla.), Pete Ricketts (R-Neb.), Jim Risch (R-Idaho), Mike Rounds (R-S.D.), Marco Rubio (R-Fla.), Eric Schmitt (R-Mo.), Rick Scott (R-Fla.), Tim Scott (R-S.C.), Thom Tillis (R-N.C.), Tommy Tuberville (R-Ala.), and Roger Wicker (R-Miss.).
Thune led the Senate’s attempt to repeal the estate tax while Congress considered the Tax Cuts of Jobs Act (TCJA) in 2017. Although the final version of the TCJA did not repeal the death tax, the law effectively doubled the individual estate and gift tax exclusion to $10 million ($12.9 million in 2023 dollars) through 2025, which prevents more families and generationally-owned businesses from being affected by this tax. The increased exclusion expires at the end of 2025, which increases uncertainty and planning costs for family-owned businesses, farms, and ranches.
Thune’s bill is supported by more than 150 members of the Family Business Coalition and 111 members of the Family Business Estate Tax Coalition, which includes the American Farm Bureau Federation, the National Cattlemen’s Beef Association, the National Federation of Independent Business, the Associated General Contractors of America, the Policy and Taxation Group, the National Association of Home Builders, the National Association of Manufacturers, and many others. Read further quotes of support for the Death Tax Repeal Act here.
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OK. When will they pay, Senator?
When will the very wealthy pay taxes like we do? If the owners of Walmart or guys like Warren Buffet don’t sell their stock while they are alive, they don’t pay capital gains – right? No tax. And without the “death tax”, their kids would get those hundreds of billions tax-free. And later, it goes to their grandchildren tax-free. On and on. Meanwhile, YOU STILL PAY INCOME TAXES on your comparatively minuscule income.
Some people we consider wealthy do pay. Doctors and lawyers pay taxes because they are salaried or show annual income. You likely do as well. But the super-rich who own stock… nope. And they never will if this goes through.
But they claim that it’s to “save the farmers”. We need to “save small businesses”. Baloney. There is already an exemption of twelve million dollars. This is to help those with over 12 million net worth on up to hundreds of billions in wealth. It’s not about the family farm. You and I will pay higher taxes so the super-wealthy don’t have to.
This is beyond stupid.
The wealthy pay taxes on their money when they earn it. Then they pay taxes on the money their investments earn. They pay taxes on the income they receive, both earned and unearned. Their heirs will pay income taxes on the money the estates generate. Since the wealthy have higher incomes than the poor, they pay a lot more in income taxes.
After paying taxes on the income, they will pay sales taxes on what they spend. The wealthy buy more stuff than the poor, so they pay a lot more in sales taxes.
When their purchases are real estate, taxes are paid on the value of the land etc every year that it is owned. and since the wealthy own more real estate than the poor, they pay a lot more in real estate taxes. When their purchases are vehicles, wheel taxes are also an annual expense.
After a lifetime of paying way more taxes than most people, estate taxes are just the government’s way of taxing the same money all over again; having paid income taxes on everything you earned, sales taxes on everything you bought, real estate taxes and wheel taxes on whatever you lived in or on, or rode around in, having all your possessions taxed all over again is WRONG.
How stupid are you?
Clearly too stupid to know how the securities market works.
If you invest like Buffet in a non-dividend stock or security and never sell, the capital growth isn’t taxed. The only tax-inducing trigger is when the asset is sold, should the security holder die, that asset transfers to their beneficiary, but if beneficiary sells, the capital gain during the original holder’s lifetime isn’t taxed, just the capital gain (if any) that accumulates from the date of transfer to the sell date.
Anonymous at 9:44… Your Buffet example describes precious few investors, especially in ag. I understand perfectly what Anonymous at 9:17 is describing, so I guess that makes me stupid, too.
And as for Elk at 5:36 and 9:46, his envy of billionaires would end up punishing farmers and ranchers. Yeah, that’s the ticket.
For the record, the top 1 percent of earners pay 42 percent of federal income tax.
Farmers and ranchers. Ha!
Those with a net worth in excess of 13 million dollars ARE the top 1%. That is who this benefits. Not family farmers and small businesses. The wealthiest would escape income taxes and estate taxes with this foolish legislation.
So, if your net worth is not that high, and you don’t inherit that kind of money… sorry to tell you… but you will be paying more in taxes, and many millionaires and billionaires will be paying little or nothing. For generations.
“Little to nothing”
So please explain how it is that the 1% that you are so insanely jealous of manages to pay for almost 50% in all income taxes collected. How about a logical response and not the typical elk hyperbole?
As I wrote earlier, some of the wealthy do pay significant taxes. Especially those who have to report high annual incomes.
But if you end the estate tax, many other millionaires and billionaires will not only defer taxes in their lifetime, but then pass on tax-free millions/billions to their children. And again to their grandchildren. On and on. Meanwhile, the rest of us “little people” pay.
Warren Buffet could buy every home in South Dakota. He needs to pay taxes. So do his heirs.
Anonymous at 9:44, people who buy securities pay for them with money which was taxed when it was earned.
They don’t pay taxes on the $6500-7500 per year set aside in an IRA but the trouble with those things is you pay taxes when you start drawing on it, and distributions are mandatory at age 72. So you can’t just leave it there, you have to take it out and pay taxes on it, unless you die first. But the super wealthy are investing way more than $7500/year, using money they earned and paid income taxes on. And why should you pay more taxes on it if you just let it sit there? That money is fueling the economy.
According to Forbes, his riches rose $24.3 billion between 2014 and 2018. Over those years, the data shows, Buffett reported paying $23.7 million in taxes.
Amazon founder and CEO Jeff Bezos paid a true tax rate of 0.98% as his wealth grew by a staggering $99 billion between 2014 and 2018. (Jun 8, 2021)
Elk at 10:33… Three little words: I. Don’t. Care.
Your bitterness on this topic has to affect your health. Go for a walk. Kiss your wife. Hug your dog. Or do the opposite.
“I Don’t Care”. Well, gee… who can argue with that.
Obviously elk doesn’t know the difference between income and wealth growth…among other things.
You are supporting the concept of multi-generational tax avoidance for billionaires. If the Senator’s effort were successful, these super-rich would avoid income taxes for over a hundred years. Way more. Forever.
The children of billionaires might inherit 100 billion dollars, then spend twenty billion without taxation and keep the rest in stock for their own kids. On and on. Generation after generation.
Don’t ask me to pay their taxes.
nobody avoids income taxes. You earn money and you pay taxes on it. Capital gains aren’t realized on anything until you sell them.
If a billionaire’s kids spend their inheritance on stuff they will pay sales taxes on whatever they buy.
Oh. That’s wonderful. The billionaire’s kids will pay “sales taxes” on whatever they buy.
This was his issue in 2004. Come on. 20 year anniversary is next year.
democrats have health care and social security for political hot buttons that are left broken for political value, republicans have country-of-origin-labeling and the death tax i guess lol
Wait a minute! Just wait one minute! They always called it a death tax repeal…but now we find out it was just a holiday? If only we would’ve had somebody there to fix it when the Republicans were in charge…
The Death Tax Repeal Act? It should be called… The Leona Helmsley Act.
“We don’t pay taxes. Only the little people pay taxes.”
Leona Helmsley funded the Prairie Center Cancer Institute in Sioux Falls. Poor people didn’t do that, Leona Helmsley did it.
She also left 12 million dollars to her dog.
The Helmsley foundation does make sizable charitable donations. There is nothing wrong with that. But it also has nothing to do with the topic here. The rich need to be taxed like the rest of us.
So… some of these enormous estates would pay taxes in the first generation only. Others would NEVER have paid income taxes on their wealth.
Can you imagine – 200 years from now – some trillionaire 25 year old dude could say that he doesn’t have to pay income taxes because his great-great-great-great-great grandpa once made a lot of money. He then says: “And, it’s kinda funny, he didn’t have to pay either.”