‘Kentucky families shouldn’t have to worry about an unfair death tax when they pass their livelihoods down to the next generation’
U.S. Senate Republican Leader Mitch McConnell
WASHINGTON, D.C. – U.S. Senate Republican Leader Mitch McConnell (R-KY) joined Senate Republican Whip John Thune (R-SD), a member of the tax-writing Senate Finance Committee, and dozens of their Senate colleagues in reintroducing legislation to permanently repeal the federal estate tax, more commonly known as the death tax. Senator McConnell is an original cosponsor of Senator Thune’s bill, the Death Tax Repeal Act of 2021, which would finally end this purely punitive tax that has the potential to hit family-run farms and businesses as the result of the owner’s death.
“Kentucky farm families and small businesses have enough to deal with during this pandemic. They shouldn’t also have to worry about an unfair death tax when they pass their livelihoods down to the next generation,” said Senator McConnell. “Republicans’ historic tax reform helped unleash the best American economy in 50 years, including exempting many Kentuckians from the death tax. Unfortunately, Washington Democrats want to double down on the federal government’s final insult and force more grieving families to visit the undertaker and the IRS on the same day. I’m proud to join Senator Thune to permanently end the death tax and support opportunity for rural families and communities.”
Thune led the Senate’s effort to repeal the death tax while Congress considered the Tax Cuts and Jobs Act (TCJA) in 2017. Although the final version of the TCJA did not repeal the death tax, the law doubled the individual estate and gift tax exclusion to $10 million ($11.7 million in 2021 dollars) through 2025, which will prevent more families from being affected by this tax.
In addition to Thune and McConnell, the bill is cosponsored by U.S. Sens. John Barrasso (R-Wyo.), Marsha Blackburn (R-Tenn.), Roy Blunt (R-Mo.), John Boozman (R-Ark.), John Cornyn (R-Texas), Tom Cotton (R-Ark.), Kevin Cramer (R-N.D.), Mike Crapo (R-Idaho), Ted Cruz (R-Texas), Steve Daines (R-Mont.), Joni Ernst (R-Iowa), Deb Fischer (R-Neb.), Chuck Grassley (R-Iowa), John Hoeven (R-N.D.), James Inhofe (R-Okla.), John Kennedy (R-La.), Roger Marshall (R-Kan.), Jerry Moran (R-Kan.), Jim Risch (R-Idaho), Mike Rounds (R-S.D.), Marco Rubio (R-Fla.), Rick Scott (F-Fla.), Richard Shelby (R-Ala.), and Roger Wicker (R-Miss.).
The Death Tax Repeal Act of 2021 is supported by the American Farm Bureau Federation, the National Cattleman’s Beef Association, NFIB, the National Association of Manufacturers, the Family Business Coalition, the Family Business Estate Tax Coalition, the Policy and Taxation Group, the Associated General Contractors of America, the National Taxpayers Union, and many others.
Companion legislation was introduced in the U.S. House Representatives by Rep. Jason Smith (R-Mo.).