Peace Garden News

U.S. Senators Kevin Cramer and John Thune have introduced the Death Tax Repeal Act, aiming to permanently eliminate the federal estate tax and generation-skipping transfer taxes. The proposed legislation also seeks to reduce the federal gift tax from 40 percent to 35 percent while retaining the full step-up in basis.

Senator Cramer criticized the taxation of assets after death, stating, "Taxing the assets of people who have died is wrong on multiple levels, starting with the fact the same income is taxed twice, during life and after death." He further added, "It’s hard to imagine a less moral government imposition than taxing death."

Senator Thune emphasized the importance of family farms and ranches in South Dakota's economy. He remarked, "Family farms and ranches play a vital role in our economy and are the lifeblood of rural communities in South Dakota," adding that losing even one due to the death tax is too many. He called for an end to what he described as a "punishing, burdensome tax" that threatens their viability.

The bill has garnered support from over 190 members of the Family Business Coalition and more than 105 members of the Family Business Estate Tax Coalition. These coalitions include organizations such as the National Federation of Independent Business, the National Restaurant Association, and others.

The legislation is cosponsored by several U.S. Senators including Jim Banks (R-IN), John Barrasso (R-WY), Marsha Blackburn (R-TN), among others.