Senate Republican leaders want to eliminate the federal estate tax for good as it represents double taxation and takes hard-earned money from families who want to pass their earnings on to future generations, reports The Hill.
"Oftentimes, family-owned farms and ranches bear the brunt of this tax, which threatens families’ agricultural legacies and makes it difficult and costly to pass these businesses down to future generations," Sen. John Thune, R-S.D., said in a news release after introducing legislation to repeal the tax Monday. "This way of life is integral to so many South Dakota families, which is why I remain committed to removing roadblocks for these family businesses, and we can start by repealing the death tax once and for all."
The Tax Cuts and Jobs Act of 2018 doubled the estate tax exemption to $11.2 million ($22.4 million per couple), but the exception is scheduled to expire after 2025. The top statutory rate remains 40 percent.
"The estate tax doesn’t serve any purpose except forcing family farms and family-run businesses to waste precious capital on costly tax planning and in too many cases, paying taxes on income or property that have already been taxed once," said Sen. Chuck Grassley, R-Iowa, who co-sponsored Thune's bill with Senate Majority Leader Mitch McConnell, R-Ky.
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