Central ND News

The federal estate tax, commonly known as the death tax, has been a topic of significant debate. In 2017, the Tax Cuts and Jobs Act reduced its impact by doubling the exemption amount and linking it to inflation. However, these cuts are set to expire in 2025 unless extended. The tax notably affects family farms, ranches, and small businesses.

In response, U.S. Senator Kevin Cramer (R-ND) and U.S. Senate Majority Leader John Thune (R-SD) have introduced the Death Tax Repeal Act. This proposed legislation aims to permanently eliminate the federal estate tax and generation-skipping transfer taxes. It also seeks to reduce the federal gift tax from 40 percent to 35 percent while maintaining the full step-up in basis.

Senator Cramer stated: “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 emphasized that taxing death is a morally questionable government imposition.

Senator Thune highlighted the importance of family farms and ranches: “Family farms and ranches play a vital role in our economy and are the lifeblood of rural communities in South Dakota.” He argued that losing even one farm or ranch due to this tax is too many, advocating for an end to what he describes as a punishing burden.

Cramer had previously supported related efforts during discussions on the Tax Cuts and Jobs Act. The current bill has backing from over 190 members of the Family Business Coalition and more than 105 members of the Family Business Estate Tax Coalition. These groups include prominent organizations such as the National Federation of Independent Business, National Restaurant Association, National Association of Home Builders, and U.S. Chamber of Commerce.

The bill's cosponsors encompass a wide range of senators including Jim Banks (R-IN), John Barrasso (R-WY), Marsha Blackburn (R-TN), John Boozman (R-AR), Katie Britt (R-AL), Ted Budd (R-NC), Shelley Moore Capito (R-WV), John Cornyn (R-TX), Tom Cotton (R-AR), Mike Crapo (R-ID), Ted Cruz (R-TX), John Curtis (R-UT), Steve Daines (R-MT), Joni Ernst (R-IA), Deb Fischer (R-NE), Lindsay Graham (R-SC), Chuck Grassley (R-IA), Bill Hagerty (R-TN), Josh Hawley (R-MO), John Hoeven (R-ND), Cindy Hyde-Smith(R-MS) among others.

For those interested in further details about this legislative proposal, additional information can be accessed through official channels.