More than two dozen Republican senators, including Majority Leader Mitch McConnell, signed on as sponsors of a bill by South Dakota Sen. John Thune to repeal the estate tax. Farm groups are long-time opponents of the tax, saying it disrupts transfer of property from one generation to the next.
The Senate adopted a nonbinding resolution to abolish the tax in 2015. Congress has increased the exemption level on estates so that most Americans are not affected. The rise in land values during the agricultural boom of 2006-13 has created concern in farm country. Land accounts for four-fifths of farm assets.
Thune is a member of the Senate Finance Committee, which oversees tax law. The Trump White House lists tax reform as one of its top priorities for congressional action. “In an environment where it’s frequently too difficult and costly for family-owned farms to be passed from one generation to the next, we should be knocking down hurdles to find ways to incentivize families to retain these multi-generation businesses,” said Thune in a statement.