U.S. Senators Katie Britt, Tommy Tuberville, John Thune, and 39 of their Senate colleagues reintroduced The Death Tax Repeal Act, which would permanently repeal the federal estate tax, more aptly known as the Death Tax. Sponsors say that The Death Tax Repeal Act would end this purely punitive tax that can potentially kill family farms, ranches, and businesses due to the owner’s death.
“Alabama’s incredible farmers and cattlemen work tirelessly throughout their lives to feed and clothe our state, nation, and world while responsibly stewarding their land for future generations,” said Sen. Britt. “The Death Tax effectively forces the next generation of farm families to decide between bankruptcy or selling their farm to a corporation or a foreign entity. No American farm family, already suffering from the loss of their loved one, should be faced with this devastating choice. This is not only a matter of what is just, but also one that affects our food security. Repealing the Death Tax safeguards Alabama’s over 44,000 farms, 97% family-owned. I will continue to fight to protect the ability of Alabama farmers, cattlemen, and small business owners to live the American Dream and pass on their family’s legacy and livelihood to their children.”
“The Death Tax destroys American jobs by stifling profitable businesses that employ hardworking Americans,” said Sen. Tuberville. “Our government should be focused on creating an economic environment that preserves small businesses and family farms instead of taxing them out of operation. I will keep pushing for policies that incentivize our next generation of farmers and business owners so that we can continue to rely on their contributions for a strong economy.”
“Agriculture is the backbone of South Dakota’s economy,” said Thune. “For years, I have fought to protect farm and ranch families from the onerous and unfair death tax. Family-owned farms and ranches often bear the brunt of this tax, which makes it difficult and costly to pass these businesses down to future generations. I will continue to do everything in my power to remove these roadblocks for family businesses and repeal the death tax once and for all.”
The Senators argue that the Death Tax is a form of double taxation, which is inherently unfair. Adding insult to injury, the Death Tax can be more burdensome on people with smaller estates – meaning it predominantly harms working-class landowners, small businesses, and family farmers and cattlemen. The sponsors claim that studies have shown that repealing the Death Tax would spur economic growth, create jobs, and increase wages.
Senators Britt and Thune were joined in cosponsoring the legislation by Senate Minority Leader Mitch McConnell.
The bill is supported by members of the Family Business Coalition and the Family Business Estate Tax Coalition, including the American Farm Bureau Federation, the National Cattlemen’s Beef Association, the National Federation of Independent Businesses, the Associated General Contractors of America, the National Association of Home Builders, the National Association of Manufacturers, and many others.
Katie Britt was elected to the Senate in 2022.
Tuesday will be day 8 of the 2023 Alabama Regular Legislative Session.
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