More than 140 business and trade associations, including FEDA, have signed a letter supporting the repeal of the federal estate tax.
The tax, commonly known as the “death tax,” taxes the transfer of property and assets upon a person’s death. The tax is often a burden for small and family-owned businesses that must pay it to continue operating when an owner dies. For 2023, the filing threshold for the estate tax is $12,920,000.
The letter was drafted by the Family Business Coalition (FBC) and will be sent to Sen. John Thune, (R-SD), a longtime proponent of ending the estate tax. Thune is expected to introduce a bill that would repeal the estate tax sometime during the week of March 27.
The letter cites data from the Tax Foundation that states repealing the estate tax would create more than 150,000 jobs. Further, it points to a 2012 study by the House Joint Economic Committee that found the death tax, which contributes only one-half of one percent of total federal revenue, had destroyed over $1.1 trillion of capital in the U.S. economy.
“The death tax forces family businesses to waste money on expensive insurance policies and estate planning. These burdensome compliance costs make it even harder for business owners to expand their businesses and create more jobs,” the letter says.
“The death tax is unfair,” it continues. “It makes no sense to require grieving families to pay a confiscatory tax on their loved one’s nest egg. Far too often this tax is paid by selling family assets like farms and businesses. Other times, employees of the family business must be laid off and payrolls slashed. No one should be punished for fulfilling the American dream.”
The full letter is available here.