Repealing the Death Tax
By Rep. Kristi Noem
My dad woke up at the crack of dawn almost every day in pursuit of his American Dream: to build a farm large enough that his kids could grow up and farm together, if we wanted to. It’s the same reason most parents get up and go to work every morning; they’re trying to give their kids something they didn’t have.
For the better part of my 20s, however, I didn’t know if my dad’s dream would be seen through. As many reading this now know, we lost my dad unexpectedly in a farm accident. I was pretty young – recently married, working on my college degree, getting ready to have our first baby. It changed our whole life.
While we were still trying to pick up the pieces after my dad died, our family received a letter from the IRS. Because of this tragedy that had undermined our sense of security, the Death Tax was now about to undermine our financial security.
Although we had cattle, machinery and land, we didn’t have the money to pay what the IRS was asking for. Selling land didn’t seem to be a good option. After all, it was my dad who had warned me, “Don’t get rid of land. God isn’t making any more of it.” Selling the cattle and machinery would basically shut the farm down, so that wasn’t an option either.
Eventually, we were able to secure a loan. While this kept the farm up and running, it impacted operations for about a decade and forced us to make some pretty difficult executive decisions so we could make ends meet.
Because no family should have to go through what ours did, I introduced legislation earlier this Congress to fully and permanently repeal the Death Tax.
Of course my own family’s story is wrapped around this issue, but at the core of it all, I reject the Death Tax on the principle that it is a double tax. Families asked to pay the Death Tax have already paid taxes when they bought the land, machinery, or inventory (in the case of a small business). They shouldn’t be taxed on it again simply because a loved one has passed away.
Additionally, this tax disproportionately impacts farmers, ranchers and small businesses, who may have a large number of assets, but not necessarily cash in the bank. Some may be forced to close the doors altogether just to pay this tax. It’s not right.
With broad support for repeal within the Trump administration and Congress, I’m hopeful we’ll finally be able to repeal this unfair and immoral double tax. Simply put, a lifetime of hard work shouldn’t be undermined because of a greedy federal Death Tax policy.
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The vast majority of estates — 99.9% — do not pay federal estate taxes. While the top estate tax rate is 40%, the average tax rate paid is just 17%. The estate tax is only paid on assets greater than $5.3 million per individual
You conveniently ignore the facts of management cost and lawyer/accountant costs let alone the stress cost.
I am sorry that Representative Noem’s father died before his time and her personal story on this matter is very compelling. But with all due respect, could not this financial tragedy have been prevented if only her father’s assets had also been placed in her mother’s name too, from day one?
Representative Noem own tragic story is really not about estate taxation, rather it is about womens and partners’ rights….