Hoeven, Thune, GOP colleagues unveil Death Tax Repeal Act

U.S. Sens. John Thune (R-SD) and John Hoeven (R-ND) on March 30 introduced legislation along with dozens of their Republican colleagues that would permanently repeal the federal estate tax, also known as the death tax, as well as generation-skipping transfer taxes.  

Sen. Thune led 40 GOP original cosponsors, including Sen. Hoeven, in proposing the Death Tax Repeal Act, S. 1108, which would end what the lawmakers think is a punitive tax that has the potential to impact family-run farms, ranches, and businesses when the owner dies, according to information provided by their offices.

“For years I have fought to protect farm and ranch families from the onerous and unfair death tax,” Sen. Thune said. “Family-owned farms and ranches often bear the brunt of this tax, which makes it difficult and costly to pass these businesses down to future generations. I will continue to do everything in my power to remove these roadblocks for family businesses and repeal the death tax once and for all.”

“The death tax penalizes families during some of the most difficult times in their lives and brings particular hardship to our agriculture producers,” said Sen. Hoeven. “We need a new generation of young farmers, and they should not be put in the position where they may have to sell land or possibly leave agriculture altogether when a loved one passes away. That’s why we continue to advance a permanent repeal of this unnecessary and burdensome tax.” 

Among the other cosponsors of S. 1108 are U.S. Sens. Marsha Blackburn (R-TN), Shelley Moore Capito (R-WV), Steve Daines (R-MT), Joni Ernst (R-IA), Deb Fischer (R-NE), Jerry Moran (R-KS), Mike Rounds (R-SD), Tim Scott (R-SC), Thom Tillis (R-NC), and Roger Wicker (R-MS).

Sen. Thune led the U.S. Senate’s attempt to repeal the estate tax when Congress considered the Tax Cuts and Jobs Act (TCJA) in 2017. Although the final version of the TCJA did not repeal the death tax, the law effectively doubled the individual estate and gift tax exclusion to $10 million ($12.9 million in 2023 dollars) through 2025, which prevents more families and generationally owned businesses from being affected by the tax, the information says. 

The increased exclusion expires at the end of 2025, which would increase uncertainty for family-owned businesses, farms, and ranches, states the information.

The bill is supported by more than 150 members of the Family Business Coalition and 111 members of the Family Business Estate Tax Coalition, including the American Farm Bureau Federation, the National Cattlemen’s Beef Association, the National Federation of Independent Business, the Associated General Contractors of America, the Policy and Taxation Group, the National Association of Home Builders, the National Association of Manufacturers, among many others.