AMT recently joined over 150 small business organizations on a letter in support of the Death Tax Repeal Act (Act). Business groups from every sector of the economy signed the coalition letter released by the Family Business Coalition.
The Act, introduced by GOP Senators Thune from South Dakota and Hoeven from North Dakota, would permanently repeal the federal estate tax, commonly known as the death tax. A similar bill was introduced in the House in January with seven original cosponsors. There are currently no Democrats cosponsoring either bill.
The coalition letter to the Senate bill’s sponsors reads in part:
“It makes no sense to require grieving families to pay a confiscatory tax on their loved one’s nest egg. Far too often, this tax is paid by selling family assets like farms and businesses. Other times, employees of the family business must be laid off and payrolls slashed. No one should be punished for fulfilling the American dream. The negative effects of the estate tax make permanent repeal the only solution for family businesses and farms. Your legislation will help America’s family businesses create jobs, expand operations, and grow the economy.”
The 2017 Tax Cuts and Jobs Act nearly doubled the estate tax exemption beginning in 2018. But only temporarily. If action isn’t taken by Dec. 31, 2025, the exemption could be cut in half, increasing the number of manufacturers subject to estate taxes. Like bonus depreciation, which begins phasing out this year, the uncertainty of temporary tax provisions hinders investment and hiring decisions. Only permanent policy solutions provide certainty for strategic planning.
A full copy of the Family Business Coalition letter is available here: https://bit.ly/40rhxEq
AMT continues to work with the coalition to support the Death Tax Repeal Act. We look forward to keeping our members informed as Congress debates this important issue.