Arrington introduces estate tax reduction legislation

On Monday, Chairman Jodey Arrington introduced the Estate Tax Rate Reduction Act, which would cut the estate tax in half and provide tax relief to family-owned businesses.

Currently, the estate tax – commonly known as the “Death Tax” – is the highest tax rate in the U.S. Tax Code at 40 percent.

“The Death Tax is an unfair double tax that could force the next generation to sell their family business - on which they’ve paid a lifetime of taxes - to pay another tax simply because of a family member’s passing,” said Arrington.

“Penalizing Americans who work their entire lives, build successful businesses, and seek to pass down a better life to their children and grandchildren is the antithesis of the American Dream. I am proud to introduce legislation to cut this punishing and unnecessary financial burden.”

The Estate Tax Rate Reduction Act would reduce the U.S. estate tax from 40 percent to 20 percent, reducing the tax burden on familyowned businesses and allowing business owners to invest more of their hard-earned money in expanding their operations and creating jobs.