MADISONVILLE, La. – U.S. Senator John Kennedy (R-La.) has joined Senate Majority Leader John Thune (R-S.D.) and 44 other colleagues in introducing the Death Tax Repeal Act, a bill aimed at eliminating the federal estate tax for American families, farmers, and small business owners.
Currently, when an individual passes away, the federal government imposes an estate tax on the transfer of property, land, or businesses to heirs. This tax often creates financial hardships for family-run businesses, forcing them to sell off assets to cover tax liabilities.
“The government shouldn’t discourage Louisiana’s farmers or landowners from keeping family businesses alive when a person passes away,” said Kennedy. “I’m proud to join my colleagues in introducing the Death Tax Repeal Act to support America’s family-run businesses.”
Protecting Family-Owned Farms and Small Businesses
The legislation is particularly significant for family-owned farms and ranches, which play a vital role in rural economies. Many of these businesses face an unfair financial burden when passing down land or assets to the next generation.
“Losing even one family farm to the death tax is one too many,” said Thune. “This burdensome tax forces families into costly estate planning and threatens the long-term survival of farms, ranches, and small businesses across America.”
Broad Support in Congress
The bill has gained widespread backing, with 45 Republican senators co-sponsoring the legislation. In the House of Representatives, Rep. Randy Feenstra (R-Iowa) introduced a companion bill, further demonstrating legislative momentum to repeal the tax.
Economic and Policy Implications
- Repealing the estate tax would allow businesses and family farms to continue operating without financial strain when assets are transferred.
- It would eliminate the need for costly estate planning to mitigate federal inheritance tax obligations.
- The change could boost economic stability in rural areas by ensuring family-owned businesses can remain intact for future generations.
Next Steps
The Death Tax Repeal Act will now move through the legislative process, where it is expected to be debated in the Senate and House. If passed, the bill would permanently eliminate the federal estate tax, a policy shift that proponents argue would provide long-term relief for American families and businesses.
For more information on the legislation, visit Senator Kennedy’s website.