Representatives Sanford Bishop, Jr. (D-GA) and House Budget Chairman Jodey Arrington (R-TX) have introduced a bill to cut the estate tax rate, which is the highest in the U.S. Tax Code (as high as 40%). The Estate Tax Reduction Act would cut the estate tax in half and also provide tax relief to family-owned businesses, gifts, and generation-skipping transfers.
The congressmen want to help American families retain their family businesses by reducing the penalties for "death taxes" and allowing for an easier transition of ownership, financially.
Rep. Bishop shared that this bill brings "fairness" to families at a time when they are in mourning.
“I am proud to join Congressman Arrington on this bipartisan effort to bring fairness to our families with businesses such as farms, funeral homes, radio stations, and others who are crushed by the overwhelming tax that comes at one of the most somber times of their lives – the death of a loved one,” said Congressman Bishop. “When Americans have rolled up their sleeves, worked hard their whole lives to provide for their children and take care of their loved ones and built family small businesses that drive local economies and feed our nation, the tax code should be fair and not stand in the way of one generation leaving the next a better life.”
Furthermore, Chairman Arrington said it's "unfair" to penalize family businesses that have paid taxes for a "lifetime" with more taxes.
“The Death Tax is an unfair double tax that could force the next generation to sell their family business - on which they’ve paid a lifetime of taxes - to pay another tax simply because of a family member’s passing. Penalizing Americans who work their entire lives, build successful businesses, and seek to pass down a better life to their children and grandchildren is the antithesis of the American Dream,” said Chairman Arrington. “I am proud to introduce bipartisan legislation to cut this punishing and unnecessary financial burden.”
The Estate Tax Reduction Act has been referred to the House Ways and Means Committee, as well as the House Budget Committee.
