HYDE-SMITH AGAIN SEEKS PERMANENT REPEAL OF DEATH TAX
Miss. Senator Says Family Farms, Small Businesses Subjected to Punitive Federal Estate Tax
WASHINGTON, D.C. – In advance of the congressional debate on extending the 2017 Trump tax cuts before the close of 2025, U.S. Senator Cindy Hyde-Smith (R-Miss.) is again an original cosponsor of legislation to protect farmers, ranchers, and small businesses by permanently repealing the federal estate tax, commonly known as the “death tax.”
The Death Tax Repeal Act (S.587) was reintroduced by Senate Majority Leader John Thune (R-N.D.) as a continuation of a Republican effort to repeal the estate tax, which can affect the ability of families and generationally-owned businesses from passing their life’s work to their heirs. Forty-five Republican Senators are original cosponsors of the Thune measure.
“The debate on extending the Trump tax cuts gives us a valuable opportunity to finally do away with the death tax, which disproportionately burdens so many farming, ranching, and small business families,” Hyde-Smith said. “Rather than forcing these families to fork over a significant portion of their life’s work to the IRS, we should permanently repeal the death tax so future generations can keep these family operations solvent and prospering.”
“Family farms and ranches play a vital role in our economy and are the lifeblood of rural communities in South Dakota,” said Thune. “Losing even one of them to the death tax is one too many. It’s time to put an end to this punishing, burdensome tax once and for all so that family farms, ranches and small businesses can grow and thrive without costly estate planning or massive tax burdens that can threaten their viability.”
A permanent death tax repeal was not ultimately included in the 2017 Tax Cuts and Jobs Act (TCJA), but the tax cut legislation signed into law by President Trump in 2017 effectively doubled the individual estate and gift tax exclusion to $10 million (approximately $13.9 million in 2025 dollars) through 2025. The increased inclusion has help shield more family- and generationally-owned businesses from being affected by the federal estate tax.
The 2017 increased exclusion, however, expires at the end of 2025, which increases uncertainty and planning costs for family-owned businesses, farms, and ranches.
S.587 and a House companion measure (HR.1301) are supported by more than 190 members of the Family Business Coalition and more than 105 members of the Family Business Estate Tax Coalition, which includes the American Farm Bureau Federation, American Veterinary Medicine Association, Independent Community Bankers of America, National Black Chamber of Commerce, U.S. Chamber of Commerce, American Soybean Association, National Cotton Council, USA Rice Federation, National Federation of Independent Business, the National Restaurant Association, the National Association of Home Builders, Americans for Tax Reform, Independent Women’s Voice, and National Taxpayers Union.
Hyde-Smith has consistently cosponsored death tax repeal legislation since becoming a U.S. Senator in 2018.
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