Florida Senator Rick Scott joins push to remove inheritance tax on family-owned businesses
Florida – Senators Rick Scott (R-FL), John Cornyn (R-TX), and 42 other Republican colleagues have proposed the Death Tax Repeal Act in a major effort aiming at eliminating the federal estate tax. This measure aims to eliminate what is sometimes described as the “death tax,” a fee paid on the estates of deceased individuals. Joining this significant legislative endeavor, Senate Majority Leader John Thune (R-SD) has also showed strong backing.
The proposed legislation seeks to permanently alleviate the financial load placed on farmers, small businesses owners, and families during a period of loss. Apart from eliminating the federal inheritance tax, the measure aims at the Generation-Skipping Transfer (GST) Tax and suggests changes to the Gift Tax to fit inflation. It also seeks to classify transfers into trusts as taxed gifts.
Senator Scott underlined the need of helping family-owned businesses and American entrepreneurs, especially in the sector of agriculture.
“Florida families who have dedicated their lives to starting small businesses, like farms and ranches, help put food on tables and fuel the state’s economy,” said Sen. Scott. “The families who own these businesses are working hard to support their own livelihoods while building legacies for future generations.”
Like Scott, Senator Cornyn emphasized the extra burden the death tax places on families already coping with the emotional loss of a loved one. Eliminating this tax would, he said, reduce needless suffering and provide families all around Texas more financial options.
Leader Thune also highlighted the essential role that ranchers and farms play in South Dakota’s economy and way of life. Emphasizing the unfair effect of the death tax on these important companies, he said that losing even one of them is too many.
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This Senate Republican effort corresponds with a comparable House action in which House Budget Chairman Jodey Arrington (R-TX) and Representative Sanford Bishop, Jr. (D-GA) unveiled the bipartisan Estate Tax Reduction Act. Aiming to facilitate the transfer of ownership and lower the financial penalties connected with “death taxes,” this House measure recommends halving the estate tax rate even though it does not intend to completely eliminate the death tax.
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The combined effort of the Senate and the House highlights an increasing legislative attention on changing tax rules influencing inheritance. Although the Death Tax Repeal Act’s planned total repeal marks a more dramatic break from present policy, the nonpartisan approach of the Estate Tax Reduction Act could provide a more sensible road forward. Both ideas show a notable change in how Congress is handling the sustainability of family-owned businesses in America and the financial dynamics of inheritance.
