Senator John Thune (R-S.D.) and Representative Kevin Brady (R-Texas) today re-introduced legislation to permanently repeal the federal estate tax, better known as the death tax, to finally put an end to this punitive tax on family farms, ranches, and businesses upon the death of an owner. Thune and Brady’s bill, the Death Tax Repeal Act of 2013 (S. 1183, H.R. 2429), is nearly identical to legislation introduced in the 112th Congress that garnered the bipartisan support of 223 Representatives and 38 Senators.
“The federal government has no place forcing grieving families to pay a tax on their loved one’s life savings that has been built from income already taxed when originally earned,” said Thune, Chairman of the Senate Republican Conference and member of the Senate Finance Committee. “Currently more than 70 percent of family businesses do not survive to the second generation, and 90 percent of family businesses do not survive to the third generation. According to a study by former CBO Director Douglas Holtz-Eakin, repealing the death tax would create 1.5 million additional small business jobs and would shave almost a percentage point off the unemployment rate. This tax punishes farmers and entrepreneurs for a lifetime of hard work. Death should not be a taxable event, and I will continue to work in Congress to see a permanent end to this unfair tax.”
“What kind of government swoops in upon your death and takes nearly half of the nest egg you’ve spent your entire life building?” asked 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.”
Thune and Brady’s bill is supported by the American Farm Bureau Federation, Associated Builders and Contractors, National Association of Manufacturers, National Federation of Independent Business, 60 Plus Association, Americans for Tax Reform, Club for Growth, National Black Chamber of Commerce, International Franchise Association, National Taxpayers Union, American Conservative Union, Family Business Coalition, and many others.
Thune’s bill is cosponsored in the Senate by Senators Kelly Ayotte (R-N.H.), John Barrasso (R-Wyo.), Roy Blunt (R-Mo.), John Boozman (R-Ark.), Saxby Chambliss (R-Ga.), Dan Coats (R-Ind.), John Cornyn (R-Texas), Mike Crapo (R-Idaho), Mike Enzi (R-Wyo.), Deb Fischer (R-Neb.), Jeff Flake (R-Ariz.) Chuck Grassley (R-Iowa), Orrin Hatch (R-Utah), Dean Heller (R-Nev.), Jim Inhofe (R-Okla.), Johnny Isakson (R-Ga.), Mike Johanns (R-Neb.), Mark Kirk (R-Ill.), Mike Lee (R-Utah), Mitch McConnell (R-Ky.), Jerry Moran (R-Kan.), Jim Risch (R-Idaho), Pat Roberts (R-Kan.), Marco Rubio (R-Fla.), Tim Scott (R-S.C.), Richard Shelby (R-Ala.), Pat Toomey (R-Pa.), and David Vitter (R-La.).Brady’s bill is cosponsored in the House of Representatives by Representatives John Duncan, Jr. (R-Tenn.), Jim Gerlach (R-Pa.), Tim Griffin (R-Ark.), Bill Johnson (R-Ohio), Sam Johnson (R-Texas), Kenny Marchant (R-Texas), Mike McIntyre (D-N.C.), David McKinley (R-W.Va.), Kristi Noem (R-S.D.), Devin Nunes (R-Calif.), and Austin Scott (R-Ga.).