On June 19, Sen. John Thune (R-SD) and Rep. Kevin Brady (R-TX) re-introduced a bill to permanently repeal the federal estate tax. This move follows the January decision to make permanent the federal estate tax with an exemption of $5.12 million/individual and a tax rate of 40% for amounts over the exemption.
While that move may have been a step in the right direction, it certainly doesn’t help the farmers and ranchers who may be asset-rich but cash-poor. That’s why I’m pleased to hear about this new legislation.
“We don’t believe death should be a taxable event,” says Thune, chairman of the Senate Republican Conference and member of the Senate Finance Committee. “Imposing a tax rate as high as 40% is not just bad for our economy but is bad for the families who have saved and built through their lifetimes and also created jobs in the process. One-third of family businesses that owed the death tax actually owed more in taxes than what they had in liquid assets.”
“What kind of government swoops in upon your death and takes nearly half of the nest egg you’ve spent your entire life building?” asks Brady, chairman of the Joint Economic Committee and a senior member of the House Ways & Means Committee. “The Death Tax remains the number-one reason family-owned farms and businesses don’t survive to the next generation, and it’s time to end this immoral tax once and for all in America.”
Read the entire press release here, and listen to Thune’s comments below.
What do you think about the current estate tax levels? Do you think a permanent repeal will help producers? What are the chances of this bill passing? Discuss the pros and cons in the comments section below.