Today, Congressman Bob Latta (R-OH5) introduced the Permanently Repeal the Estate Tax Act of 2021, legislation that would eliminate the Federal Estate Tax, also known as the death tax. Latta introduced the legislation in previous Congresses and was a leader in the Ohio legislature of efforts to eliminate the Ohio Estate Tax.
“The death tax creates real and unfair consequences for our farmers, ranchers, and small business owners,” said Latta. “The federal government shouldn’t be taxing money that was already taxed, just because a person passes away. The death tax has an overwhelming economic impact due to the cost of life insurance and financial preparation needed to prepare for the tax. Americans deserve relief from this burdensome and unnecessary tax.”
In sectors that require high capital investment, such as agriculture, families often struggle to meet the tax requirements imposed by the Estate Tax because their liquid assets are much lower than the value of the land, property, and equipment. Latta’s legislation would repeal Chapter 12 of the tax code (estate tax provisions) and ensures that Americans are not taxed on the increased value of an estate by retaining the stepped-up basis at death.