The Death Tax Repeal Permanency Act has 35 co-sponsors. This legislation would permanently abolish the federal estate tax, better known by ranchers, farmers, and family business owners across America as the “death tax.” The tax is currently set at a 35 percent tax rate with a 5-million dollar exemption. In 2013, the estate tax rate is scheduled to increase to 55 percent with a one-million dollar exemption.
One of the sponsors, Senator John Thune, calls the death tax – destructive, misguided, and inefficient, and he says – our economy, small businesses, family farms, and ranches that are expected to be transferred to future generations will benefit enormously from its demise. Another co-sponsor, Senator Mike Johanns points out – the loss of a family member should not be a taxable event, and Americans should not be forced to sell the family business, farm or ranch just to pay it.
According to a study by Douglas Holtz-Eakin, the former director of the non-partisan Congressional Budget Office, repealing the death tax could create 1.5 million additional small business jobs and decrease the national unemployment rate by nearly one percent.