“Death shouldn’t be taxable,” Boozman said in a statement. “Farmers and small business owners deserve to pass along their investments to future generations without having to worry about a tax especially in this economic climate.”
“These hardworking Americans deserve to have this tax repealed once and for all. This will allow our agriculture producers and small businesses to invest and expand their operations rather than force them to spend that money hiring attorneys and accountants,” Boozman said.
The Senate is expected to take up tax issues next week. Majority Leader Harry Reid (D-Nev.) introduced the Middle Class Tax Cut Act, S. 3412, earlier this week. Originally Democrats included changes to the estate tax, but The Hill reported that provision has been striped from the bill.
Currently the top estate tax rate is 35 percent with an exemption for the first $5 million. If Congress does nothing by the end of the year, the top rate would rise to 55 percent with a $1 million exemption.
The Democrats’ original tax plan would have set the tax level at 45 percent and created an exemption for the first $3.5 million of the estate.