One Family Farm Lost to the Death Tax is One Too Many

By Sen. John Thune

Last week I introduced a bill to permanently repeal the death tax. I’ve been pushing to repeal the death tax for a long time, because I’ve seen the consequences the tax can have for family farms and ranches and for family businesses. I’m proud that we protected a lot of family farms and businesses three years ago with the Tax Cuts and Jobs Act by doubling the death tax exemption, but the death tax is still a big problem.

First, the change we made to the death tax in the Tax Cuts and Jobs Act isn’t permanent – the increased exemption level expires at the end of 2025. Second, Democrats – always eager to seize any possible revenue source – have proposed not merely returning the exemption to its previous level, but reducing it even further. That would be a big problem for a lot of family farms and businesses.

Every American, of course, has an obligation to pay what he or she owes in taxes, but there should be a limit to how many times the government can tax you. Death should not be a taxable event. The money you leave at your death has already been taxed by the government at least once, which makes the death tax double taxation.

People who support the death tax tend to talk as if the death tax only affects the fabulously wealthy, which isn’t the case. Small and medium-sized businesses, family farms, and ranches spend a lot of time and money on estate planning to avoid being hit by this tax.  Farmers and ranchers in my state know that without careful – and costly – planning, the federal government can come around after their death demanding a staggering 40 percent of their taxable estate, and their children won’t have the money to pay without risking the farm or ranch.

Why? Well, farming and ranching is often a cash-poor business. A farmer might technically be worth several million dollars, but the vast majority of that is land and farming equipment, and only a small fraction of it is money in the bank. The Farm Bureau reports that over the past 10 years the value of farmland has increased by nearly 50 percent. It’s completely possible that a farmer’s land might have substantially increased in value over the past decade while his income has barely increased at all. In fact, it’s perfectly possible that in a bad year, a farmer with several million dollars’ worth of land might barely break even income-wise.

So what happens when a farmer dies? Well, the federal government will claim up to 40 percent of his taxable estate. But his liquid assets – in other words, the cash he has available – will likely not come close to covering the tax bill from the federal government. And so the only thing left for his children to do will be to start selling off farm equipment and land. In some cases they will be able to keep the farm – just a smaller version of it. In others, they may have to sell off the family farm entirely.

On top of all this, the death tax is an inefficient tax that raises a very small amount of revenue – while placing a very large burden on farmers and ranchers and small businessmen and women.

Repealing the death tax is an idea that has won bipartisan support in the past – including support from more than one sitting Democrat senator. I hope it will win bipartisan support in this Congress as well, and I will continue to fight to ensure that no family farm or business has to worry about this punishing tax.

I’ve said it before, and I’ll say it again: One family farm or business lost to the death tax is one too many.

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Rounds, Smith Lead Bipartisan Push to Repeal Outdated, Discriminatory Laws Against Native Americans

 WASHINGTON—U.S. Senators Mike Rounds (R-S.D.) and Tina Smith (D-Minn.), both members of the Senate Committee on Indian Affairs, have reintroduced the Repealing Existing Substandard Provisions Encouraging Conciliation with Tribes (RESPECT) Act.

The RESPECT Act would repeal a number of outdated federal laws that are discriminatory against Native Americans. Examples include laws that allow for the forced removal of Native American children from their homes to be sent to boarding schools and laws subjecting Native Americans to forced labor.

“Throughout history, Native Americans have been subjected to federal laws that are offensive, immoral and outright racist,” said Rounds. “In many cases, these laws are more than a century old and do nothing but continue the stigma of subjugation and paternalism from that time period. Clearly, there is no place in our legal code for such laws. The idea that these laws were ever considered is disturbing, but the fact that these laws remain on our books – is at best – an oversight. While we cannot rewrite the past, we can help write a better future for generations to come. I look forward to working with my colleagues on both sides of the aisle to pass the RESPECT Act this session of Congress.”

“This is about justice for Native communities in Minnesota and across the country,” said Smith. “The fact that these racist, shameful laws still exist is yet another sign of the federal government’s failure to live up to its treaty and trust obligations. There is much more work we need to do to reckon with our country’s history of disparaging, disrespecting, and erasing Indigenous communities, and this bill is one of many steps we must take. I will continue to lift up the voices of Minnesota’s Ojibwe and Dakota nations, its urban Indigenous population, and all the sovereign Tribal Nations across the country as Congress works to right these past wrongs and strengthen the government-to-government relationship going forward.”

Joining Rounds and Smith in reintroducing this bill are cosponsors: James Lankford (R-Okla.) and Kyrsten Sinema (D-Ariz.).

The RESPECT Act is supported by the Great Plains Tribal Chairmen’s Association (GPTCA) and the National Congress of American Indians (NCAI).

“We thank Senator Rounds and his co-sponsors for their leadership in bringing forward the RESPECT Act to eliminate the outdated, substandard, and anti-Indian measures from the era of Indian wars and cultural oppression,” said Harold Frazier, Chairman of the GPTCA and Chairman of the Cheyenne River Sioux Tribe. “Please move this bill forward to enactment.”

“The RESPECT Act is common sense legislation that is long overdue,” said Oglala Sioux Tribe President Kevin Killer. “Wopila to Senator Rounds for his leadership in reintroducing this legislation that seeks to bring reconciliation, understanding, and healing to Native communities nationwide. These revisions are much needed and appreciated.”

Rounds first introduced the RESPECT Act during the 114th Congress, where it passed out of the Senate Indian Affairs Committee. During the 115^th and 116^th Congresses, the legislation passed the Senate unanimously but failed to receive a vote in the House.

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After flirting with running for US Senate a few days ago, it looks like Lora Hubbel is back announcing on the KOTA Territory News page that she’s running for Governor:

Yeah, whatever, captain crazy. 

I would encourage you to find out more about her platform at LoraHubbel.org.  I hear part of what she claims is that she’ll never let you down.  At least, that’s what her website says.

An Endowment for Our Future

By: Governor Kristi Noem 
March 19, 2021

I recently had the privilege of hearing from two impressive young South Dakota college students. Hattie Seten is the Students’ Association President at South Dakota State University, and she was recently selected to be a Rhodes Scholar. Abuk Jiel is the President of the University of South Dakota Student Government Association. They’re both hard-working, incredibly articulate, and both come from low-income families.

Hattie and Abuk told me their stories at a very special event: I had the privilege to sign SB 171, which funds $50 million for the South Dakota Freedom Scholarship. These funds will work with $150 in private donations ($125 million have already been pledged!) to create an endowment for a needs-based scholarship in South Dakota.

Once established, this endowment will perpetually create opportunities for thousands of students like Hattie and Abuk to go to college. So many of these bright young South Dakotans just need an opportunity to succeed. I challenged the legislature to approve this funding so that we could provide just such an opportunity, and I am so glad that they followed through.

Let’s be clear – this isn’t a free handout. These students need to graduate, and then live and work in South Dakota for at least 3 years after their graduation. After that time, I am confident that many of these folks will decide to build their careers and raise their families in South Dakota. But until very recently, we’ve struggled with young talent leaving our state. This scholarship will help to reverse that trend.

With all of the new businesses flocking to South Dakota, we have a serious need for workforce development. Our unemployment rate is only 3.1%, which is incredible news! But a low unemployment rate means that it can be tough to find skilled workers to fill job openings. This scholarship will be a crucial part of training the workforce that South Dakota needs to staff up the businesses that are moving to our state.

So many people deserve thanks for their generosity in making this happen. T. Denny Sanford and the folks at First Premier Bank and PREMIER Bankcard helped get this project off the ground with the initial $100 million pledge. The legislature stepped up with an additional $50 million. And both Avera Health and Sanford Health pledged $12.5 million apiece, bringing the total funding to $175 million.

But we need $200 million to make this endowment sustainable into the future, so we will continue to work hard to raise the final funds to make this project a reality. Our young South Dakotans deserve nothing less.

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Flags at Half-Staff in Remembrance of Victims of Atlanta Shooting

PIERRE, S.D. – Today, Governor Kristi Noem ordered that flags be flown at half-staff, effectively immediately, until sundown on Monday, March 22, 2021, in remembrance of the victims of the shooting in the Atlanta metropolitan area.

This is in response to a proclamation by President Joseph R. Biden, which can be found here.

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Governor Noem Signs South Dakota Freedom Scholarship into Law
Also Signs Four Other Education Bills

PIERRE, S.D. – Today, Governor Noem signed Senate Bill 171, which provides $50 million for the South Dakota Freedom Scholarship. This money, together with other generous donations, will create a $200 million endowment for needs-based scholarships in South Dakota.

“With this historic scholarship, we’ll be giving thousands of promising young South Dakotans the opportunity that they need to succeed,” said Governor Kristi Noem. “I challenged legislators to get this across the finish line, and they got it done. These dollars will sustain needs-based scholarships for South Dakota students far into the future, setting our kids and grandkids up for long-term success. I want to thank T. Denny Sanford, PREMIER, Avera Health, Sanford Health, and everyone else who has made this project a top priority.”

Governor Noem also signed the following four education bills into law:

SB 27 revises off-campus tuition rates at institutions governed by the Board of Regents.
SB 49 revises property tax levies for school districts and revises the state aid to general and special education formulas.
SB 175 removes certain eligibility requirements for the partners in education tax credit program.
HB 1254 prohibits preferential treatment in higher education employment practices.

Governor Noem has signed 131 bills into law this legislative session.

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Thune Opposes Xavier Becerra’s Nomination for Health Secretary
“His record as chief lockdown enforcer in California poses a greater risk to churches than to the coronavirus.”

WASHINGTON — U.S. Sen. John Thune (R-S.D.) today released the following statement after voting against California Attorney General Xavier Becerra’s nomination to lead the U.S. Department of Health and Human Services:

“Xavier Becerra is an extremist who has used the power of public office to target religious liberty, freedom of conscience, and the pro-life cause. Having him lead the federal health department is bad news for all who have been praying for the pandemic to end. His record as chief lockdown enforcer in California poses a greater risk to churches than to the coronavirus, and he is the wrong choice to lead the Department of Health and Human Services.”

Click here to watch Thune discuss his opposition to the Becerra nomination on the Senate floor.

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Rounds Votes Against Radical, Unqualified Health Secretary Nominee

WASHINGTON—U.S. Sen. Mike Rounds (R-S.D.) today issued the following statement after voting against the confirmation of California Attorney General Xavier Becerra as the next Secretary of Health and Human Services (HHS).

“I am deeply troubled by the Senate’s vote today to confirm California Attorney General Xavier Becerra as the next Secretary of Health and Human Services (HHS). Mr. Becerra’s lack of health care experience, extreme views on abortion, support for government-run health care, and record on religious liberty make him unfit to lead our health department.

“Mr. Becerra has repeatedly used his government positions to advance a radical pro-abortion agenda and to attack religious liberty in California and across the country. On top of that, he enthusiastically supports Medicare-for-all, which would hurt our rural health providers and strip 160 million Americans of their private insurance.

“Indian Health Services, a part of HHS, needs a leader who understands improving health outcomes for South Dakota’s tribal members, not another unqualified bureaucrat with a socialist agenda.

“Mr. Becerra is the wrong person to lead our nation’s health department—now or ever.”

On February 25, Rounds and 74 other members of Congress sent a letter urging President Joe Biden to withdraw Becerra’s nomination.

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Thune, Murphy Reintroduce Bill to Encourage Healthy Living

WASHINGTON — U.S. Sens. John Thune (R-S.D.) and Chris Murphy (D-Conn.) today reintroduced the Personal Health Investment Today (PHIT) Act, legislation that would encourage more physical activity in the United States and incentivize healthier living by allowing Americans to use a portion of the money saved in their pre-tax health savings account (HSA) and/or flexible spending account (FSA) toward qualified sports and fitness purchases, like gym memberships, fitness equipment, and youth sports league fees.

“As a lifelong athlete and fitness enthusiast, I understand the value of and feel grateful to have access to gyms and fitness equipment, especially over the last 12 months,” said Thune. “For some Americans, though, certain gym or athletic league membership costs can be prohibitive, keeping them from pursuing healthy habits like exercising or participating in other physical activities. By giving Americans greater flexibility with their HSAs and FSAs, we can empower people to make healthy choices, get active, and hopefully avoid the onset of costly chronic conditions.”
“I’m glad to be reintroducing the PHIT Act with Senator Thune to make it easier for Americans to lead more active lives,” said Murphy. “The PHIT Act would allow people to use their flexible spending accounts to cover physical activity expenses like gym memberships, little league and youth sports, and fitness equipment. This legislation removes barriers to a healthy lifestyle, and can potentially reverse the trend of chronic health issues throughout our communities like obesity and diabetes.”

“Now more than ever, particularly as the country begins to recover from the Coronavirus pandemic, we need to do more to reduce barriers to play and improve the opportunity for all kids to get in the game,” said Kim Davis, senior executive vice president of social impact, growth initiatives and legislative affairs of the NHL. “The PHIT Act will help families get back on the ice after more than year of navigating uncertainty, and we commend Senators Chris Murphy and John Thune for leading this important effort to encourage fitness and access to sport.”

“The pandemic has highlighted a critical issue: inactive individuals were at higher risk of severe COVID outcomes,” said Tom Cove, CEO and president of the Sports & Fitness Industry Association. “Our research has shown time and again that individuals in lower-income households are less active. Following the catastrophic consequences of the COVID-19 virus, we must make healthy, active lifestyles a national priority and PHIT allows us to do that by making it affordable for American families. SFIA applauds Senator Murphy and Senator Thune for their leadership in helping Americans be more active and healthy.”

Qualified expenses do not include: private clubs owned and operated by members or clubs with golf, hunting, sailing, or riding facilities. In the case of sports equipment (other than exercise equipment), reimbursement for a single item cannot exceed $250, and these pre-tax dollars cannot be used for general fitness apparel or footwear.

The PHIT Act is cosponsored by Sens. John Barrasso (R-Wyo.), Shelley Moore Capito (R-W.V.), Kevin Cramer (R-N.D.), Angus King (I-Maine), Lisa Murkowski (R-Ala.), Mike Rounds (R-S.D.), and Roger Wicker (R-Miss.).

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Johnson & Schrader Push to Improve Public Health Preparedness with Coordinated “One Health” Approach
“One Health” Shores Up Efforts to Prepare for, and Prevent, Health Crises

Washington, D.C. – Today, Representatives Dusty Johnson (R-SD) and Kurt Schrader (D-OR 5) introduced bicameral, bipartisan legislation to improve public health preparedness by ensuring federal agencies advance a “One Health” approach—the idea that human and animal health are linked, and that they should be studied together—to prevent and respond to disease outbreaks.

According to the CDC, the current COVID-19 virus originally came from an animal. The Advancing Emergency Preparedness Through One Health Act would improve coordination among those studying animal and human health by requiring the Department of Health and Human Services (HHS), the Agriculture Department (USDA), and the Department of Interior (Interior) to adopt a One Health framework with other agencies. U.S. Senators Tina Smith (D-Minn.) and Todd Young (R-Ind.) introduced bipartisan companion legislation in the Senate today.

“COVID-19 has further revealed the strong correlation between human health and animal health. A ‘One Health’ approach will ensure America is better prepared to combat disease outbreaks before they become widespread amongst species,” said Rep. Dusty Johnson.

“Over the last year, we have all experienced firsthand the strong correlation between animal health and human health,” said Rep. Kurt Schrader. “This unique relationship has often been overlooked in how we work across government agencies to address these shared diseases. Beyond the current pandemic, rabies, salmonella, West Nile Virus, and avian flu are all examples of diseases that we see in animals before they are passed onto humans, and can be fatal in both. This bill is an important step to improve preparedness, coordination, and communication between veterinarians who work with animals every day and federal agencies who respond to health outbreaks.”

“We sadly are all too familiar with how outbreaks take a real toll on families and our economy. I’ve pushed adopting a ‘One Health’ approach since I served as Minnesota Lieutenant Governor, and now I’m continuing that work in the Senate while we all navigate combatting COVID-19,” said Sen. Smith. “We need to recognize the connection between human, animal and environmental health so future preparedness efforts meet the needs of all people, all ages, and in all communities.”

“The COVID-19 pandemic illustrates how we must focus our efforts on better understanding the connection between animal and human health,” said Sen. Young. “Instituting a One Health framework at the federal level will help us to improve our knowledge of diseases like COVID-19 so we can best prevent, prepare, and respond to future pandemics and outbreaks.”

“The global COVID-19 pandemic is a devastating example of why this legislation is so critically important. In order to successfully deal with threats like this in the future, we must take an integrated approach to solving the public health and food security threats that are emerging at the intersection of humans, animals and the environment. Better coordination among the different agencies and secretariats involved in health and agriculture will help leverage their strengths and make them more effective,” said Dr. Andrew T. Maccabe, Association of American Veterinary Medical Colleges (AAVMC) Chief Executive Officer.

“As we have learned from COVID-19, influenza, Zika, the emergence of antimicrobial resistance and many other infectious threats, human, animal and environmental health are interconnected and One Health strategies are critical. The Infectious Diseases Society of America supports this important legislation to strengthen our surveillance, research and workforce to better prevent, prepare for and respond to outbreaks,” said Barbara D. Alexander, MD, MHS, FIDSA; President, Infectious Diseases Society of America; Professor of Medicine and Pathology, Duke University School of Medicine.

“COVID-19 has clearly demonstrated the need for our nation to take a One Health approach to disease outbreaks,” said Dr. Douglas Kratt, American Veterinary Medical Association (AVMA) President. “Animals, humans, and the environment are more interconnected than ever, and the bill reintroduced today is an important step to fully implementing One Health principles into our public health approach. The AVMA urges Congress to pass the Advancing Emergency Preparedness Through One Health Act so we can better prepare, detect, and respond to zoonotic diseases in the future.”

“Local health department professionals understand that the health of people is connected to the health of animals and the environment and that a ‘one health’ approach is necessary to truly protect health. The Advancing Emergency Preparedness Through One Health Act acknowledges the critical role of partnerships between the local, state, and federal levels to develop a comprehensive One Health framework. We appreciate the leadership of all the policymakers who recognize the need for this approach in order to protect the public’s health,” said Lori Tremmel Freeman, MBA, CEO of the National Association of County and City Health Officials (NACCHO).

The Advancing Emergency Preparedness One Health Act would:
*Advance workforce development related to preventing and responding to disease outbreaks in animals and humans;
*Improve coordination between federal agencies studying human, animal health, and the environment; and
*Foster understanding of the connections between human, animal, and environmental health.

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