Death to 'Death Tax'? Montana Senator Working on Permanent Repeal

At the heart of the proposed legislation is the status of family farms and ranches.

However, the Federal Estate Tax, commonly known as the death tax, is certainly way more far-reaching. And senators from Montana and South Dakota are spearheading legislation to repeal the tax permanently.

You know that old Ben Franklin saying, "The only two things certain in life are death and taxes."? Well, they managed to get on a collision course with this legislation.

The Northern Ag Network tells us that today (February 18), U.S. Senate Majority Leader John Thune (R-S.D.) led 45 of his Senate colleagues in reintroducing legislation that would permanently repeal the tax. Senator Thune describes it as a "purely punitive tax that can hit family-run farms, ranches, and businesses as the result of the owner’s death."

Getty images, Ralf Nau

Senator Thune was joined by Montana Senator Tim Sheehy in reintroducing the bill. Senator Sheehy was quoted as saying, "Especially in Montana, the death tax most acutely punishes hardworking families in agriculture by threatening to put their operations out of business after the tragic loss of a loved one.

"It’s long past time to take this obscene tax off the books for good.”

Montana Senator Steve Daines, along with 43 other senators, is also one of the bill's sponsors.

PROGRESS MADE 8 YEARS AGO IS IN ITS TWILIGHT

The Northern Ag Network points out that while the 2017 Tax Cuts and Jobs Act did not repeal the death tax, the the law effectively doubled the individual estate and gift tax exclusion to $10 million through 2025, which prevents more families and generationally-owned businesses from being affected by the death tax. The increased exclusion expires at the end of 2025. That increased uncertainty and planning costs for family-owned businesses, farms, and ranches is what's driving the lawmakers' proposed bill to permanently repeal the tax.