Nearly 200 business organizations signed a letter in support of the reintroduction of the Death Tax Repeal Act Thursday. 

The letter set to Sen. John Thune and Congressman Randy Feenstra, coincides with the refiling of a bill, S587, to repeal the act. 

Temporary estate tax relief was provided to business in the Tax Cuts and Jobs Act (TCJA) but the exemptions expire at the end of 2025. 

“It’s my hope that we will not merely extend this exemption, but that we will get rid of this fundamentally flawed tax once and for all.” Thune told the Senate Thursday. “Mr. President, the death tax is fundamentally flawed both in theory and in practice. There should be a limit to how many times the government can tax you. The money you leave at your death has already been taxed by the government at least once, which makes the death tax double taxation. And the government isn’t even profiting all that much from this double taxation.

“That’s right. The death tax accounts for a teeny, tiny fraction of government revenue. In fact, there is reason to believe that the government would collect more in taxes if it got rid of the death tax entirely, due to the economic growth and job creation that would stem from its elimination.” 

The letter, led by Family Business Coalition, says many studies have quantified the potential job growth that would result from the estate tax repeal. 

“The Tax Foundation found that the US could create over 150,000 jobs by repealing the estate tax,” the letter says. “A study by the House Joint Economic Committee found that the death tax has destroyed over $1.1 trillion of capital in the US economy – loss of small business capital means fewer jobs and lower wages.”

According to the letter, the death tax forces family businesses to waste money on expensive insurance policies and estate planning, making it harder to expand businesses and create more jobs. 

The estate tax accounts for about one-half of on-percent of federal revenue, the letter says. 

“The negative effects of the estate tax make permanent repeal the only solution for family businesses and farms.” the letter says. “Your legislation will help America’s family businesses create jobs, expand operations, and grow the economy. We thank you for your continued leadership on this important issue.” 

The Society of Collision Repair Specialists, Auto Care Association, Automotive Service Association, WMDA Car Service Station and Automotive Repair Association, National Automobile Dealers Assocation and Tire Industry Assocation are among the organizations that signed the letter.

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