Washington: Support is rapidly growing for one of the most pro-business tax reform bills in the 115th Congress, which just passed 100 bipartisan cosponsors.
H.R. 631, the Death Tax Repeal Act of 2017 authored by U.S. Representative Kristi Noem (R-SD-AL) permanently repeals the federal estate tax and has received bipartisan support since its introduction in January. Earlier this year, a group of 133 trade associations and advocacy organizations, representing a wide range of America’s family businesses joined a letter supporting the full repeal of the tax. The letter outlines the negative effects of the tax, and points out its ineffectiveness as a revenue raiser. Senator Thune’s companion legislation currently has 36 cosponsors in the Senate.
H.R. 631 provides a long overdue reprieve to family business owners and farmers hoping to pass their businesses on to their children. Currently, family businesses are forced to pay a 40 percent tax upon the death of a business owner, and capital-intensive small businesses like suppliers and distributors which must maintain massive inventories are disproportionately targeted by the estate tax. President Trump has included the repeal of the estate tax as a key part of his tax plan, and the Family Business Coalition is pleased to see that the President recognizes family businesses are important pillars in their home communities. Furthermore, these businesses provide a majority of jobs in the country. According to the Harvard Business Review family businesses account for 60 percent of workers and 78 percent of new job creation.
Palmer Schoening, Chairman of the Family Business Coalition said: “It is great to see momentum building for this important piece of legislation. Family businesses shouldn’t have to face the IRS after losing a family member. Repealing the death tax one and for all will help our economy by freeing up wasted capital used to mitigate the harmful effects of this tax.”
Identical legislation introduced in the 114th Congress by Chairman Kevin Brady (R-TX) passed the House of Representatives with bipartisan support, 240-179.
The Family Business Coalition is a diverse collection of organizations and industry groups united for the common purpose of protecting America’s family businesses across the country. FBC works to implement tax policies that help family businesses of all sizes create jobs and continue to the next generation.