Ahead of the congressional debate on extending the 2017 Trump tax cuts, U.S. Senator Cindy Hyde-Smith (R-Miss.) is once again supporting legislation aimed at permanently repealing the federal estate tax, also known as the “death tax.” The Death Tax Repeal Act (S.587) was reintroduced by Senate Majority Leader John Thune (R-N.D.), continuing Republican efforts to eliminate a tax that can impact families and generational businesses trying to pass their legacy to heirs. Forty-five Republican Senators are original cosponsors of this 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,” stated Hyde-Smith. “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.”
Senator Thune emphasized the importance of family farms and ranches: “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. 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.”
The 2017 Tax Cuts and Jobs Act did not include a permanent repeal of the death tax but did double the individual estate and gift tax exclusion through 2025. This increase has provided some protection for family-owned businesses from federal estate taxes but is set to expire at the end of 2025.
Both S.587 and its House companion measure (HR.1301) have received support from more than 190 members of organizations like the Family Business Coalition and Family Business Estate Tax Coalition. These groups include entities such as the American Farm Bureau Federation, U.S. Chamber of Commerce, National Federation of Independent Business, among others.
Since her tenure as U.S. Senator began in 2018, Hyde-Smith has been consistent in her support for legislation aiming at repealing the death tax.
