Western South Dakota News

U.S. Senate Majority Leader John Thune, alongside 45 Senate colleagues, has reintroduced legislation aimed at permanently repealing the federal estate tax, commonly referred to as the death tax. This move seeks to eliminate what supporters describe as a punitive measure affecting family-run farms, ranches, and businesses upon the owner's death.

Thune emphasized the importance of family farms and ranches in rural communities like South Dakota. "Losing even one of them to the death tax is one too many," he stated. He advocates for ending this "punishing, burdensome tax" to allow these enterprises to thrive without facing significant estate planning costs or tax burdens.

Senator Mike Crapo from Idaho echoed Thune's sentiments, highlighting the impact on small businesses and entrepreneurs who have dedicated their lives to building their enterprises. "The death tax can be a devastating blow to American families who want to pass down their farm or small business," Crapo remarked.

Support also comes from agricultural representatives such as Scott VanderWal of the South Dakota Farm Bureau. He expressed gratitude towards Thune for his commitment to protecting producers from what he termed a "crippling tax burden."

Nathan Sanderson of the South Dakota Retailers Association pointed out that repealing the estate tax would provide peace of mind for business owners aiming to pass their ventures onto future generations without hindrance.

The legislation has garnered support from numerous senators across various states and is cosponsored by prominent figures including Jim Banks (R-Ind.), Marsha Blackburn (R-Tenn.), Ted Cruz (R-Texas), among others. In parallel, companion legislation was introduced in the House by Rep. Randy Feenstra (R-Iowa).

Thune's efforts trace back to 2017 during discussions around the Tax Cuts and Jobs Act (TCJA). While full repeal was not achieved then, an increase in individual estate and gift tax exclusions was implemented temporarily until 2025.

The bill has received backing from over 190 members of the Family Business Coalition and more than 105 members of related organizations like the National Federation of Independent Business and U.S. Chamber of Commerce.