FOR IMMEDIATE RELEASE
Contact: James Arnold or Mary Collins Atkinson (202) 224-2353
May 13, 2021
Cotton, Boozman Introduce Bill to Reduce Estate Tax
Washington, D.C. — Senators Tom Cotton (R-Arkansas), John Boozman (R-Arkansas), and Joni Ernst (R-Iowa) today introduced the Estate Tax Reduction Act, legislation to reduce the estate tax to 20 percent—half of the current top rate of 40 percent.
This bipartisan, bicameral legislation was also introduced by Representatives Jodey Arrington (R-Texas) and Henry Cuellar (D-Texas) in the House of Representatives.
"Families shouldn't have to sell major portions of their businesses or farms after the death of a parent just to afford the 40 percent estate tax. Breaking apart a family's livelihood is neither fair or good for the economy, especially since families are often forced to sell to large corporations. My legislation would cut that rate in half, bringing the rate in line with the current capital gains rate and making it much easier to preserve a family's legacy and way of life," said Cotton.
“Arkansas’s family farmers and small business owners shouldn’t be punished for passing what they’ve established, grown and maintained onto the next generation. Our bill reduces this burden and gives these entrepreneurs and job creators more assurance that their years of hard work and investment can be carried on by their children and grandchildren instead of being forfeited to the federal government,” said Boozman.
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