UPDATED 7:16 AM PT — Tuesday, January 29, 2019
Senate Republicans are introducing legislation to help farmers and small business owners pass on their wealth to future generations.
A bill to repeal the federal estate tax — also known as the death tax — was offered by Senator John Thune on Monday with the support of the Senate Finance Committee.
The South Dakota lawmaker hopes to build off the successes of the 2017 GOP tax cut law, which rolled back the estate tax by allowing exemptions for more families.
Thune said that was a good first step in alleviating some of the stress felt by hardworking family-run businesses.
“We don’t believe death ought to be a taxable event,” explained the senator. “If you look at what families go through when they are in a grieving process, it’s really ironic that we penalize and punish them through the tax code after they worked really hard over a life time to build up some equity, some assets, they hope to be able to pass on to the next generation”.
The exemptions put into place by the tax cut law are set to expire in 2025.