Pulaski Times

U.S. Senators John Boozman and Tom Cotton from Arkansas have joined forces with Senate Majority Leader John Thune of South Dakota to propose a new piece of legislation aimed at permanently repealing the federal estate tax, often referred to as the death tax. The proposed Death Tax Repeal Act seeks to eliminate this tax, which affects family-run farms, ranches, and businesses when the owner passes away.

Senator Boozman emphasized the importance of allowing Arkansas's farm families and small businesses to maintain their legacies without facing penalties that could threaten their livelihoods. "They need certainty and relief from this counterproductive burden," he stated, advocating for the support of agriculture producers and entrepreneurs.

Senator Cotton expressed concerns about families having to sell significant portions of their businesses or farms due to the estate tax after a parent's death. He noted that breaking apart a family's livelihood is neither fair nor beneficial for the economy. According to him, ending the federal death tax would make it easier for families to preserve their legacy.

Senator Thune highlighted the crucial role family farms and ranches play in South Dakota's economy and rural communities. He stressed that losing even one such entity to the death tax is too many, advocating for an end to what he described as a punishing tax.

The Death Tax Repeal Act aims not only to repeal the Estate Tax but also to eliminate the Generation-Skipping Transfer Tax when assets are transferred from grandparents to grandchildren. Additionally, it maintains step-up basis provisions for inherited assets.

The legislation has garnered support from numerous Republican senators including Jim Banks, John Barrasso, Marsha Blackburn, Katie Britt, Ted Budd, Shelley Moore Capito, John Cornyn, Kevin Cramer, Mike Crapo, Ted Cruz among others. In total, 45 Senate Republicans are backing this initiative.

A similar bill has been introduced in the U.S. House of Representatives by Representative Randy Feenstra from Iowa’s 4th district.

Support for this legislative effort comes from over 190 members of the Family Business Coalition and more than 105 members of the Family Business Estate Tax Coalition. This includes organizations like the National Federation of Independent Business and the U.S. Chamber of Commerce.