Reps. Kristi Noem, R-S.D., and Sanford Bishop, D-GA., introduced legislation on Jan. 24, 2017, to repeal the estate tax, which some refer to as the death tax.
The American Farm Bureau Federation endorsed the repeal, saying it's needed to aid farm and ranch families as they pass their farms to the next generation.
“These family-run businesses need a tax code that encourages investment, rather than one that punishes their success," said AFBF president Zippy Duvall. "We believe that repeal of the estate tax offers the best solution to protect farms, ranches and all family-owned businesses from the estate tax.”
According to a Joint Economic Committee report, the death tax has removed more than $1.1 trillion in capital from the economy while motivating family businesses and others to reduce savings and limit growth.
“While we were still trying to pick up the pieces after my dad died in a farm accident, our family received a letter from the IRS. Because of a tragedy that undermined our sense of security, the death tax was now about to undermine our financial security,” said Rep. Noem. “No family should have to go through what ours did, so I'm committed to seeing this tragedy tax finally repealed.”
“I have always believed that the death tax is politically misguided, morally unjustified, and downright un-American,” said Rep. Bishop. “It undermines the life work and the life savings of farmers and jeopardizes small- and medium-sized businesses in Georgia and across the nation.”
Sen. John Thune, R-S.D., introduced companion legislation in the Senate.