Thune Praises House Repeal of Death Tax

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Thune Praises House Repeal of Death Tax

“This legislation will finally give farmers, ranchers and family business owners the peace of mind of knowing that they no longer have to spend substantial sums on planning to minimize their death tax liability.”

WASHINGTON, D.C.—U.S. Sen. John Thune (R-S.D.) today praised the House of Representatives bipartisan passage of a bill to permanently abolish the estate tax, more commonly referred to as the death tax. The Death Tax Repeal Act of 2015, which Thune introduced in the Senate, passed the House by a vote of 240 to 179. Thune offered the following statement regarding today’s vote:

“The death of a loved one should not be a taxable event. Imposing yet another layer of taxation, as high as 40 percent, on a family’s life savings is not just bad for the economy, it’s unfair to those who have spent their entire lives building job-creating small businesses, farms, and ranches in their local communities. This legislation will finally give farmers, ranchers, and family business owners the peace of mind of knowing that they no longer have to spend substantial sums on planning to minimize their death tax liability. I applaud the House’s bipartisan approval of this bill and look forward to the Senate taking it up later this year.”

The Death Tax Repeal Act of 2015 will now be sent to the Senate for further consideration. Last month, the Senate adopted Thune’s amendment to the Fiscal Year 2016 budget resolution to create a deficit neutral reserve fund to eliminate the death tax.

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43 thoughts on “Thune Praises House Repeal of Death Tax”

    1. Do the Waltons (Wal-Mart) or Warren Buffett pay taxes on all of those billions in growth year to year? No, because their holdings are still in stocks that they have not liquidated for capital gains.

      Now, if the estate tax is repealed, their children won’t pay taxes on those billions either. And their grandchildren won’t pay. Generation after generation.

      But you will pay. And your kids as well. Who can possibly think that’s fair and equitable?

      Now it is true that some of the top wage earners pay a good deal in taxes. But those are often people with salaries or other means that are more likely to be taxed. The wealthiest billionaires can avoid taxes much easier, however. And repealing the estate tax, on top of that, would be very unwise.

      1. “But you will pay. And your kids as well. Who can possibly think that’s fair and equitable?”

        Huh?

        How do I pay if my “estate” is too small to be subjected to the estate tax?

        Wal Mart has created THOUSANDS of jobs and has driven prices down for lower income folks to spend less—THANK GOD FOR WAL MART!

        1. Really? We all know that those who inherit nothing will pay no tax on that lack of inheritance. The point is obvious.

          The wealthiest can escape both income and estate taxes under your plan but the rest of us cannot. I do not appreciate paying income taxes in the five figures while billionaires avoid the burden.

          “Wal-Mart has created thousands of jobs”. Yes. So they should pay virtually no taxes? That is beyond ridiculous.

          1. “Yes. So they should pay virtually no taxes?”

            The owners of Wal Mart pay BILLIONS of taxes (probably every DAY):

            –payroll taxes
            –unemployment taxes
            –sales taxes
            –local infrastructure costs
            –taxes on electricity consumed
            –taxes on water used
            –property taxes
            –garbage fees
            –fuel taxes on the thousands of semis

            Now, in your limited view, you may claim that stockholders don’t pay these taxes & costs (the corp. does), but the stock price reflects the PROFITS and VALUE of that corp., both of which depends exclusively on the profit.

            This is basic econ 101, which apparently conflicts with your jealousy.

            1. We all pay property taxes, excise taxes etc. Try to stick to the point for once. Please.

              And for the love of God, could someone finally answer the question: How many South Dakota small farms and businesses paid this tax last year? Zero? One?

              Anyone have the answer? Anyone? Bueller?

          2. “The wealthiest can escape both income and estate taxes under your plan but the rest of us cannot.”

            And they will escape paying an estate tax that begins at $1 of asset. YES!

            If you think that keeping or reducing the exclusion level will result in MORE estate tax collections ,you’re delusional. It does not happen that way.

            You need to understand this: the estate tax as is MINISCULE.

            At some point, if the estate tax is too burdensome, the “wealthy” will do whatever to avoid it, which will result in LESS estate tax revenues, more transactional costs, less stable investments, and thus, less employment.

            You’re under this delusion that “raise the estate tax” will result in MORE estate tax revenues.

            IT WILL NOT!

            Enough with your “sock it to ’em” jealousy. It does not work, hasn’t worked ,and won’t work.

            1. Estate taxes do not raise revenue? Then deal with the loopholes that allow that to happen. Your answer… to not tax the wealthy while taxing the rest of us is just plain inexplicable.

              I am jealous? You keep saying that. But the problem is, just like the claim that this is about small farmers and businesses, its just not true. I want the rich to pay taxes like I do. That doesn’t make me jealous. It just means I want equitable tax policy and I won’t be fooled into supporting anything less. Not by the Republican Party or anyone else.

          3. “The wealthiest can escape both income and estate taxes under your plan but the rest of us cannot.”

            I escaped paying incomes taxes by claiming an exemption, claiming the standard deduction, claiming student loan interest, claiming 401K contributions, and ON AND ON–and millions of medium and low-income wage earners like me do the same EVERY YEAR.

            MILLIONS of wage earners escaped paying capital gains taxes on the ENTIRE gain from a house they sold this past year. Wealthy folks can only escape paying cap. gain on the first $250,000.

            ” I do not appreciate paying income taxes in the five figures while billionaires avoid the burden.”

            Then incorporate, or find a tax attorney who will tell you to dump more of your income into capital assets.

            Or just get over your jealousy. It’s ugly.

            1. I will tell you what is “ugly”. The deception put forth here by my own political Party. The wealthiest few thousand estates in the entire country are given huge financial breaks by this legislation all the while we pretend its is done for us. Look in that mirror and tell me what ugly is.

      2. “, their children won’t pay taxes on those billions either.”

        You assume that their children will inherit the stock outright.

        They probably won’t if the estate tax is repealed; they will NEVER do so if the estate tax is in place. Got it?

        Look jimmy, you’ve posted on this before and have been refuted in nearly every aspect. Your emotions of “fairness” (code for jealousy) are overwhelming the rationale for repealing the estate tax.

        1. From Forbes 2/12/14 article: “Step-up? When you sell an asset such as stock, you owe capital gains tax on the difference between what you paid for it (your basis) and what you get for it. If you inherit certain assets you can step up their tax basis to whatever they were worth at your benefactor’s death. That means highly appreciated inherited property can be sold immediately with no capital gains, or later, with all the gains before you inherited it disregarded… even many 1 percenters no longer need to worry about the federal estate tax. .”

          Not sure what you are saying but this is my understanding. If this article is wrong, please let me know.

          And you are the guys not answering the questions. How many South Dakota “small” businesses and “family” farms paid this tax last year? Zero? One? If Senator Thune does not know the answer, perhaps he should stop making the claim.

          1. “That means highly appreciated inherited property can be sold immediately with no capital gains, or ”

            It also means that highly DEPRECIATED property that is inherited at a stepped DOWN basis.

            The stepped up provision encourages holders to hold on to the property, ensuring stability in the asset.

            Under your scheme, the feds would benefit from the estate tax from the decedent, AND capital gains from the beneficiaries when they sell the property–how is that fair?

            1. “It also means that highly DEPRECIATED property that is inherited at a stepped DOWN basis.”

              Meaning, the feds would be entitled to LESS estate tax from the decedent if the cost basis is at death instead of when purchased. .

    1. The money in his campaign fund is not “earned”–it’s given.

      It cannot be “earned” as collecting gifts for legislation is illegal (“bribery”).

      If you have any information that Sen. Thune is accepting gifts or campaign money for supporting or opposing legislation, let’s hear it.

      What? You have none?

      Oh, just go away then.

      1. Really? We have evolved into the most corrupt fundraising scheme imaginable, your “giving” assumes that the givers expect nothing in return. Have naive do you think we are? Or more importantly, how naive are you?

        1. “your “giving” assumes that the givers expect nothing in return”

          Let’s hear your evidence that Sen. Thune has traded his support for specific legislation with campaign donations. Donations (and the sources) to his campaign are available on the web—which one or ones led to this legislation? FIND THEM!

          WHERE IS IT???

          Or did he just LISTEN to farming & ranching constituents and respond…like legislators do?

          “Conventional wisdom” isn’t evidence, rarely conventional, and infrequently wise.

          Now, if you happen to disagree with his stance on eliminating the estate tax, let’s hear it, but enough of the personal attacks.

          1. Nice try, you are truly living in an alternative universe if you believe that. The old adage “money talks and bs walks” has never been more applicable than now. According to the COB this will affect less than 4700 families across the US. It would interesting to compare the contribution list to that list. Do your self a favor, put in into an email to the AFP.

  3. Thank you John Thune for eliminating this stupid tax for ALL of us.

    The repeal will create more jobs and more opportunities for the least among us.

  4. How many family farms and small businesses in South Dakota paid this tax last year? Paid any amount of the tax at all? I doubt that they will tell you. Why?

    After the 5.4 million dollar exemption (and the spouse exemption), the number has to be somewhere between zero and tiny. But that won’t stop them from pretending this is all about “small” business and “family” farms. Its not.

    To me, this is the most dishonest argument I have heard from our Senator. Very disappointing.

    1. I can think of only two people in South Dakota whose estates might be affected by the repeal of the ‘death tax’. That’s Denny Sanford and Dana Dykhouse. But i noticed Mike Rounds has been silent on this issue. Perhaps his estate will get a break too. The bill does require presidential approval and it does not appear that will happen. Thankfully.

  6. anyone having a problem with the house bill as it stands can always think about letting their children inherit today before the bill becomes law.

    1. I just checked out that article. It reveals the dishonesty of the arguments from our side on this issue. I am a Republican but I think I can admit it when our party is the one doing the deceiving.

        1. Well, it should make your blood boil. Claiming the elimination of a tax on the 4,000 wealthiest estates in the country is somehow being done for us, the family farmers and small businessman. What is that?

              1. They should not have to pay any taxes if they are job creators and should get subsidies right?

      2. That is admirable and it’s too bad there are not more people like you. Our elected leaders find it all too easy to govern by deception because they think Americans are too dumb, too disinterested or too partisan to understand.

  8. From the USA Today article posted above: “Neil Harl, a professor of agriculture and economics at Iowa State University who has been involved in this area since 1958, says he has never seen a farm sold off to pay inheritance taxes.”

    That’s right…. “never”.

  9. Jimmy James my father died in 1980. Before he died he sold 8000 acres of pasture (The Ordway Prairie) with a profit made of about $800,000. The IRS took it all in a structured 15 year payout plus interest. So I got to start out in 1981 after quitting college with zero in the bank.

    I know Rep. Kristie Noem has a similar story.

    We cannot go back and change the law amending these wrongdoings but we can and should change the law moving forward so no one else has to be punished for being successful.

    1. Today, there is a 5.4 million exemption and 10.8 million for a couple. The law was already changed. That is the whole point.

      They are now talking about removing the estate tax for multi-millionaires and billionaires, NOT family farms. This would allow the wealthy another tax reduction while the rest of us continue to pay.

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