U.S. Rep. Bob Latta (R-OH) on Feb. 4 sponsored legislation that would eliminate the federal estate tax, also known as the death tax.
“The death tax has an overwhelming economic impact due to the cost of life insurance and financial preparation needed to prepare for the tax,” Rep. Latta said. “Americans deserve relief from this burdensome and unnecessary tax.”
The congressman introduced the Permanently Repeal the Estate Tax Act of 2021, H.R. 822, with cosponsor U.S. Rep. Billy Long (R-MO), which would amend the Internal Revenue Code of 1986 to repeal the estate tax and retain stepped-up basis at death, according to the congressional record bill summary.
In sectors that require high capital investment, such as agriculture, families may struggle to meet the tax requirements imposed by the Estate Tax because their liquid assets are lower than the value of their land, property and equipment, according to information provided by Rep. Latta’s office.
If enacted, H.R. 822 would repeal Chapter 12 of the tax code’s estate tax provisions to ensure that Americans are not taxed on the increased value of an estate by retaining the stepped-up basis at death, the information states.
“The death tax creates real and unfair consequences for our farmers, ranchers and small business owners,” said Rep Latta. “The federal government shouldn’t be taxing money that was already taxed, just because a person passes away.”
H.R. 822 has been referred for consideration to the U.S. House Ways and Means Committee.