MSCI Supports Effort To Repeal U.S. Estate Tax

On Feb. 13, U.S. Senate Majority Leader John Thune (R-S.D.) and 45 Senate colleagues reintroduced 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, which can hit family-run businesses as the result of the owner’s death. “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,” the senator said in a press release.

Legislation adopted by the U.S. Congress in 2017 doubled the individual estate and gift tax exclusion to $10 million (approximately $13.9 million in 2025 dollars), but that enhanced exclusion expires at the end of 2025, a problem that currently is causing increased uncertainty and planning costs for family-owned businesses, farms, and ranches.

The Metals Service Center Institute and more than 190 other organizations that are part of the Family Business Coalition signed a letter in support of Sen. Thune’s legislation. “Repealing the death tax would spur job creation and grow the economy,” the letter argued. “Many studies have quantified the potential job growth that would result from estate tax repeal. The Tax Foundation found that the United States could create over 150,000 jobs by repealing the estate tax. A study by the House Joint Economic Committee found that the death tax has destroyed over $1.1 trillion of capital in the U.S. economy — loss of small business capital means fewer jobs and lower wages.”

Read the full letter at this link and stay tuned to Connecting the Dots  as this piece of legislation makes its way through the U.S. Congress.