Jefferson Reporter

U.S. Senator Katie Britt, along with Majority Leader John Thune and 44 other Senate colleagues, has reintroduced legislation aimed at permanently repealing the federal estate tax, commonly referred to as the Death Tax. This legislative effort, known as the Death Tax Repeal Act, seeks to eliminate a tax that affects family-run farms and small businesses upon the death of an owner.

Senator Britt expressed her concerns about the impact of this tax on families: “The Death Tax unjustly forces the next generation of farm families to decide between bankruptcy or selling their farm to a corporation. No American farm family, already suffering from the loss of their loved one, should be faced with this devastating choice.” She emphasized her commitment to protecting Alabama farmers and cattlemen by stating, “I will continue to fight to protect the ability of Alabama farmers, cattlemen, and small business owners to live the American Dream and pass on their family’s legacy and livelihood to their children.”

The proposed repeal addresses what proponents view as a form of double taxation. The goal is to protect working-class landowners—such as family farmers and small business owners—from significant financial burdens following a family member's death.

Majority Leader Thune highlighted the significance of family farms in rural economies: “Family farms and ranches play a vital role in our economy and are the lifeblood of rural communities in South Dakota. Losing even one of them to the death tax is one too many.” He advocates for ending this tax so that these businesses can thrive without being threatened by costly estate planning or taxes.

Senator Britt had previously supported similar legislation during the 118th Congress. The current bill garners support from over 190 members of the Family Business Coalition and more than 105 members of the Family Business Estate Tax Coalition. This includes backing from organizations like the National Federation of Independent Business, National Restaurant Association, National Association of Home Builders, and U.S. Chamber of Commerce.