Cotton, Boozman, Thune reintroduce legislation to repeal the Federal Death Tax

Washington, D.C. — Senator Tom Cotton (R-Arkansas) and Senator John Boozman (R-Arkansas) joined U.S. Senate Majority Leader John Thune (R-South Dakota) and 45 of their Senate Republican colleagues today to reintroduce legislation that would permanently repeal the federal estate tax, commonly known as the death tax. The Death Tax Repeal Act would end this purely punitive tax that can hit family-run farms, ranches, and businesses as the result of the owner’s death.

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The legislation is cosponsored by U.S. Sens. Jim Banks (R-Ind.), John Barrasso (R-Wyo.), Marsha Blackburn (R-Tenn.), Katie Britt (R-Ala.), Ted Budd (R-N.C.), Shelley Moore Capito (R-W.Va.), John Cornyn (R-Texas), Kevin Cramer (R-N.D.), Mike Crapo (R-Idaho), Ted Cruz (R-Texas), John Curtis (R-Utah), Steve Daines (R-Mont.), Joni Ernst (R-Iowa), Deb Fischer (R-Neb.), Lindsay Graham (R-S.C.), Chuck Grassley (R-Iowa), Bill Hagerty (R-Tenn.), Josh Hawley (R-Mo.), John Hoeven (R-N.D.), Cindy Hyde-Smith (R-Miss.), Ron Johnson (R-Wis.), Jim Justice (R-W.Va.), John Kennedy (R-La.), James Lankford (R-Okla.), Mike Lee (R-Utah), Cynthia Lummis (R-Wyo.), Roger Marshall (R-Kan.), Mitch McConnell (R-Ky.), Dave McCormick (R-Pa.), Jerry Moran (R-Kan.), Bernie Moreno (R-Ohio), Markwayne Mullin (R-Okla.), Pete Ricketts (R-Neb.), Jim Risch (R-Idaho), Mike Rounds (R-S.D.), Eric Schmitt (R-Mo.), Rick Scott (R-Fla.), Tim Scott (R-S.C.), Tim Sheehy (R-Mont.), Thom Tillis (R-N.C.), Tommy Tuberville (R-Ala.), Roger Wicker (R-Miss.), and Todd Young (R-Ind.). Companion legislation was introduced in the U.S. House of Representatives by Rep. Randy Feenstra (R-Iowa).

“Families shouldn’t have to sell major portions of their businesses or farms after the death of a parent just to afford the estate tax. Breaking apart a family’s livelihood is neither fair nor good for the economy. This legislation would end the federal death tax, making it much easier to preserve a family’s legacy and way of life,” said Senator Cotton. 

“Arkansas’s farm families and small businesses should have the opportunity to preserve their legacies for the next generation instead of getting hit with a penalty that jeopardizes their livelihoods,” said Senator Boozman. “They need certainty and relief from this counterproductive burden. Repealing the death tax supports our agriculture producers and entrepreneurs so they can continue to grow their operations and benefit their local economy.”

“Family farms and ranches play a vital role in our economy and are the lifeblood of rural communities in South Dakota,” said Senator Thune. “Losing even one of them to the death tax is one too many. It’s time to put an end to this punishing, burdensome tax once and for all so that family farms, ranches and small businesses can grow and thrive without costly estate planning or massive tax burdens that can threaten their viability.”

Text of the bill can be found here.

Background on the Death Tax Repeal Act:

• Fully repeals the Estate Tax.

• Repeals the Generation-Skipping Transfer Tax (GSTT) for when a grandparent transfers assets to a grandchild.  

• Maintains step-up basis.

Boozman backs permanent small business tax cut

WASHINGTON—U.S. Senator John Boozman (R-AR) has cosponsored the Main Street Tax Certainty Act , legislation introduced by Senator Steve Daines (R-SD) and Majority Leader John Thune (R-SD) to make the 20 percent pass-through business tax deduction permanent. The expiration of this tax cut would require small businesses to face an immediate and insurmountable tax hike.

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“From main street storefronts to manufacturers, agriculture producers and more – small business is the backbone of our economy,” said Boozman. “I am proud to support policies that help Natural State small businesses thrive and stimulate growth and investment into our local communities.” 

“As the son of a contractor, I’ve seen firsthand the hard work it takes to keep a small business flourishing- especially as Americans are still grappling with the effects of Joe Biden’s inflation. It’s absolutely crucial that we pass this legislation to prevent a 20 percent tax increase for hardworking Montanans and I’ll keep fighting for ways to support Montana small businesses, which provide the majority of jobs in our state,” said Daines.

“Small businesses are the economic engine that drive growth and jobs in South Dakota and across our country. This legislation is critical to permanently extending a key provision from the Tax Cuts and Jobs Act and ensuring our small businesses and farms and ranches are not hit with a crippling tax hike at the end of 2025,” said Thune. 

The legislation is also cosponsored by Senators John Barrasso (R-WY), Shelley Moore Capito (R-WV), James Lankford (R-OK), Joni Ernst (R-IA), Tom Cotton (R-AR), Tim Scott (R-SC), Chuck Grassley (R-IA), Kevin Cramer (R-ND), Jerry Moran (R-KS), Marsha Blackburn (R-TN), Mike Rounds (R-SD), Pete Ricketts (R-NE), Katie Britt (R-AL), Jim Risch (R-ID), Eric Schmitt (R-MO), Roger Wicker (R-MS), Cynthia Lummis (R-WY), Cindy Hyde-Smith (R-MS), Tommy Tuberville (R-AL), Ted Cruz (R-TX), John Hoeven (R-ND), Thom Tillis (R-NC), Roger Marshall, M.D. (R-KS), Jim Justice (R-WV), Tim Sheehy (R-MT), Deb Fischer (R-NE), Bill Cassidy, M.D. (R-LA), Ted Budd (R-NC), Rick Scott (R-FL), Bill Hagerty (R-TN), Todd Young (R-IN), John Kennedy (R-LA) and Jim Banks (R-IN).  

The Main Street Tax Certainty Act is endorsed by multiple small businesses and advocacy groups. Here’s what they are saying about the bill. 

“Congress must preserve the pass-through deduction to protect the small and medium manufacturers that are the backbone of the American supply chain. Manufacturers strongly support the Main Street Tax Certainty Act, which will make permanent this crucial provision and ensure that our tax code supports manufacturers in America as they invest in their businesses, create jobs, and drive the economy,” said National Association of Manufacturers Managing Vice President of Policy Chris Netram.

“If Congress fails to act, more than 30 million small businesses will face a massive tax hike at the end of this year. The 20 percent Small Business Deduction allows nine out of 10 Main Street job creators to compete, grow their business, hire new employees, raise wages, and give back to their communities,” said National Federation of Independent Businesses President Brad Close. 

Over 230 trade associations also signed a letter in support of the Main Street Tax Certainty Act.

Click here to read the text of the legislation.

Boozman, Cramer, Capito and colleagues file bicameral amicus brief to overturn FHWA’s unlawful rmissions rule

WASHINGTON – U.S. Senators John Boozman (R-AR), Kevin Cramer (R-ND) and Committee on Environment and Public Works Ranking Member Shelley Moore Capito (R-WV) led 27 of their colleagues in filing a bicameral amicus brief in the U.S. Court of Appeals for the Sixth Circuit opposing a final rule from the Federal Highway Administration (FHWA) that requires state departments of transportation and metropolitan planning organizations to measure greenhouse gas (GHG) emissions on the highway system and set declining targets for those GHG emissions. The brief requests that the Court uphold the April 2024, U.S. District Court decision finding that Congress did not grant the FHWA the authority to issue the rule.

The brief argues Congress explicitly debated providing the FHWA the necessary authority to issue this rule, but decided against doing so in the Infrastructure Investment and Jobs Act. The FHWA then intentionally misconstrued congressional intent and used unrelated statutory authorities to attempt to justify issuing its GHG performance measure rule. The lawmakers also contend the rulemaking is inconsistent with recent Supreme Court decisions paring back executive branch overreach, and that FHWA is ignoring principles of federalism at the expense of state governments to further its own policy agenda.

“Congress considered, and ultimately rejected, providing [FHWA] with the authority to issue a GHG performance measure regulation, but [FHWA] contorted ancillary existing authorities to impose one anyway,” the members argued. “In doing so, [FHWA] impermissibly usurped the Legislative Branch’s authority and promulgated the GHG performance measure without statutory authority delegated by Congress.” 

“Put simply, when [FHWA] established a GHG performance measure regulation, it exceeded the powers Congress authorized. And it did so both at the expense of separation of powers and in violation of the Administrative Procedure Act,” the members continued. 

Senate Republican Leader Mitch McConnell (R-KY) and Senators John Barrasso (R-WY), Mike Braun (R-IN), Katie Britt (R-AL), Ted Cruz (R-TX), Mike Crapo (R-ID), Steve Daines (R-MT), Joni Ernst (R-IA), Deb Fischer (R-NE), Lindsey Graham (R-SC), John Hoeven (R-ND), Cindy Hyde-Smith (R-MS), Cynthia Lummis (R-WY), Roger Marshall, M.D. (R-KS), Markwayne Mullin (R-OK), Pete Ricketts (R-NE), Jim Risch (R-ID), Mike Rounds (R-SD), Marco Rubio (R-FL), Rick Scott (R-FL), Tim Scott (R-SC), Dan Sullivan (R-AK), John Thune (R-SD), Tommy Tuberville (R-AL) and Roger Wicker (R-MS) – as well as U.S. Representatives Sam Graves (R-MO-06), Chairman of the Transportation and Infrastructure Committee, and Rick Crawford (R-AR-01), Chairman of the Highways and Transit Subcommittee – also cosigned the brief. 

Full text of the amicus brief is available here.

Background:

Shortly after the rule was finalized, 21 state attorneys general, including Arkansas, filed litigation challenging the regulation. The U.S. District Court found the Biden administration rule to be illegal, but FHWA appealed the decision to the Sixth Circuit Court of Appeals and it remains under further consideration. 

In April of this year, the U.S. Senate approved a Congressional Review Act (CRA) joint resolution of disapproval overturning the rule by a vote of 53-47. The bipartisan measure was led by Cramer and cosponsored by Boozman, Ranking Member Capito and dozens of their colleagues.

Boozman, Thune, Crapo Lead Colleagues in Demanding Biden Administration Increase Agricultural Exports

WASHINGTON – U.S. Senator John Boozman (R-AR), Ranking Member of the Senate Agriculture, Nutrition, and Forestry Committee, along with Sens. John Thune (R-SD) and Mike Crapo (R-ID), Ranking Member of the Senate Finance Committee, led 18 of their colleagues in urging U.S. Trade Representative Katherine Tai and U.S. Department of Agriculture Secretary Tom Vilsack to increase U.S. agricultural exports and improve the competitiveness of U.S. products abroad.  

“We expect trade to fluctuate in response to macroeconomic factors and market conditions,” wrote the senators. “However, the current sharp decline in U.S. agricultural exports is directly attributable to and exacerbated by an unambitious U.S. trade strategy that is failing to meaningfully expand market access or reduce tariff and non-tariff barriers to trade. While the Biden administration continually refuses to pursue traditional free trade agreements, China, Canada, the European Union, the United Kingdom, and others continue to ink trade pacts that diminish American export opportunities and global economic influence.”

The letter was also signed by U.S. Sens. Marsha Blackburn (R-TN), Ted Budd (R-NC), Kevin Cramer (R-ND), Steve Daines (R-MT), Joni Ernst (R-IA), Deb Fischer (R-NE), Chuck Grassley (R-IA), John Hoeven (R-ND), Ron Johnson (R-WI), James Lankford (R-OK), Roger Marshall, M.D. (R-KS), Jerry Moran (R-KS), Pete Ricketts (R-NE), Jim Risch (R-ID), Mike Rounds, (R-SD), Tim Scott (R-SC), Thom Tillis (R-NC) and Tommy Tuberville (R-AL).

 Full letter here and below:

Dear Ambassador Tai and Secretary Vilsack: 

We write to express deep concern with the continued erosion of critical markets for U.S. agricultural exports. For decades, the United States steadily increased market access for U.S. food and agricultural products. We accomplished this feat through negotiations of actual free trade agreements, removal of technical barriers to trade, and holding our trading partners accountable to their commitments, all of which have helped strengthen the agriculture economy at home and developed important strategic relationships abroad. Yet, in the last fiscal year (FY) alone, U.S. agricultural exports declined by more than $17 billion, and recent forecasts show a further decline by more than $8 billion in FY 2024. As a result, the U.S. agricultural trade deficit is projected to reach a record $30.5 billion in FY 2024. This decline is unsustainable, and we urge the Biden administration to immediately take action to improve the competitiveness of U.S. agricultural products abroad and reverse this trend.

We expect trade to fluctuate in response to macroeconomic factors and market conditions. However, the current sharp decline in U.S. agricultural exports is directly attributable to and exacerbated by an unambitious U.S. trade strategy that is failing to meaningfully expand market access or reduce tariff and non-tariff barriers to trade. While the Biden administration continually refuses to pursue traditional free trade agreements, China, Canada, the European Union, the United Kingdom, and others continue to ink trade pacts that diminish American export opportunities and global economic influence.

International trade is critical to the continued success of U.S. agriculture. For the 2023 marketing year, nearly 70 million acres of major crops like corn, soybeans, and wheat were planted to meet the demands of our foreign customers. Additionally, more than 95 percent of U.S. cotton produced, nearly 80 percent of almonds produced, and more than 70 percent of nonfat milk powder produced were destined for the export market in 2023. And in a typical year, half of U.S.-produced rice and 20 percent of U.S.-produced potatoes are exported. Diminishing access to foreign agricultural markets for U.S. industries creates significant economic headwinds and jeopardizes the livelihoods of more than one million American workers, farmers, and ranchers, as well as millions more U.S. jobs throughout the export supply chain. 

With our concerns in mind, please respond to the following questions within 14 days of your receipt of this letter. 

• What specific actions does the Biden administration plan to take to increase U.S. agricultural exports in 2024?

• Does the Biden administration intend to pursue new or improved free trade agreements with any countries to obtain new market access for agricultural products in 2024?

We further ask the Biden administration to take steps to analyze and consider the relationship between U.S. competitiveness and market share in foreign agricultural markets with negotiated tariffs, tariff rate quotas, and other market access provisions. 

A continued decline in U.S. agricultural exports is avoidable and unacceptable. The Biden administration must take immediate action to ensure this does not become a long-term trend. Thank you for your prompt attention to this important matter.