Texas Border Business
WASHINGTON, DC – U.S. Senator John Cornyn (R-TX) released the following statement after he and 45 of his Senate GOP colleagues introduced the Death Tax Repeal Act, which would permanently repeal the federal estate tax, commonly known as the death tax:
“An added financial burden is the last thing families should have to deal with in the wake of a loved one’s passing,” said Sen. Cornyn. “By repealing the death tax, this legislation would alleviate unnecessary hardship and offer greater financial opportunities for Texas families, farmers, ranchers, and businesses.”
Background:
The estate tax, more commonly described as the death tax, is a punitive tax that hits family-run farms, ranches, and businesses at a time when they are grappling with an owner’s death. Beyond being hit by the tax itself, the death tax also requires family-run businesses, including some below the exemption threshold, to spend their resources on costly estate planning policies. Furthermore, the death tax also requires these businesses to set aside capital in the event an owner’s death occurs that could have otherwise been invested into the business.
The Death Tax Repeal Act would:
Eliminate the federal estate tax for individuals who pass away after its enactment;
Repeal the Generation-Skipping Transfer (GST) Tax, which is imposed on transfers of wealth that skip a generation, such as gifts or bequests to grandchildren;
Modify the Gift Tax, indexed for inflation;
And treat transfers into trusts as taxable gifts, unless the trust is entirely owned by the donor or their spouse.
The legislation is also cosponsored by Senate Majority Leader John Thune (R-SD) and Senators 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), Tom Cotton (R-AR), Kevin Cramer (R-ND), 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), Ron Johnson (R-WI), Jim Justice (R-WV), John Kennedy (R-LA), James Lankford (R-OK), Mike Lee (R-UT), Cynthia Lummis (R-WY), Roger Marshall (R-KS), Mitch McConnell (R-KY), Dave McCormick (R-PA), Jerry Moran (R-KS), Bernie Moreno (R-OH), Markwayne Mullin (R-OK), Pete Ricketts (R-NE), Jim Risch (R-ID), Mike Rounds (R-SD), Eric Schmitt (R-MO), Rick Scott (R-FL), Tim Scott (R-SC), Tim Sheehy (R-MT), Thom Tillis (R-NC), Tommy Tuberville (R-AL), Roger Wicker (R-MS), and Todd Young (R-IN).
This legislation is endorsed by more than 190 members of the Family Business Coalition and more than 105 members of the Family Business Estate Tax Coalition, which includes the National Federation of Independent Business, the National Restaurant Association, the National Association of Home Builders, and the U.S. Chamber of Commerce.
