Repeal is the most effective way to protect family-run businesses from the estate tax, the American Farm Bureau Federation and more than 50 other organizations wrote in a letter to Sen. John Thune (R-S.D.) and Reps. Jason Smith (R-Mo.) and Sanford Bishop (D-Ga.), who introduced the Death Tax Repeal Act (S. 215, H.R. 218) in their respective chambers.
In its letter, the Family Business Estate Tax Coalition noted it had supported legislation in 2012 that included a $5 million estate tax exemption, indexed for inflation, permanent lower tax rates and provisions for spousal transfer and stepped-up basis. In addition, the coalition backed the Tax Cuts and Jobs Act’s temporary doubling of the estate tax exemption to $11.2 million and indexing of future increases for inflation through 2025.
“These changes represent significant relief to family-owned businesses from the estate tax. However, without further congressional action, the temporary increase in the exemption amount will expire at the end of 2025, increasing uncertainty and planning costs. While the FBETC supports making the estate tax provisions of TCJA permanent, the FBETC continues to believe that repeal is the best solution to protect all family-owned businesses from the estate tax,” the coalition said in the letter.