Media Contact- Alexei Woltornist (202)225-6205


Rep. Warren Davidson (R-OH) introduced the Protect Family Farms and Businesses Act (H.R. 6100) to halt the stealth death tax increase, which barring Congressional action could go into effect later this year.

On August 4, 2016, the Treasury Department released a proposed rule that would significantly increase the burden of the death tax. Specifically, the rule will hinder the ability of businesses to apply proper valuation discounts for estate, gift, and generation skipping taxes.

For the past 25 years, across Republican and Democratic administrations, valuation discounts have been applied to closely held family businesses that do not have a frequently-traded market. The new IRS rule undermines this settled law and effectively increases the death tax by 30% or more on family-owned businesses. One of the industries hardest hit by the estate tax is family owned farms that get passed on from generation to generation - an embodiment of the American Dream.

Davidson says.

he continued.

In the United States, family businesses generate over and employ . Of those family businesses that survive, only , many of them citing financial difficulties in transition.

The bill has garnered support from free market and business groups alike [* = letter of support at hyperlink]:

The Family Business Coalition, a coalition of trade associations supporting repeal of the estate tax, supports the Protect Family Farms and Businesses Act, and , “The proposed regulations would force even more family business and farms to grapple with the complicated and costly estate tax. Moreover, Treasury’s action does not comport with the will of Congress.”

Cosponsors include [* = original cosponsor]

  • Rep Abraham, Ralph Lee [R-LA-5]* 
  • Rep Blackburn, Marsha [R-TN-7]
  • Rep Brat, Dave [R-VA-7]* 
  • Rep Bridenstine, Jim [R-OK-1]
  • Rep Brooks, Mo [R-AL-5]
  • Rep Chabot, Steve [R-OH-1]* 
  • Rep Cole, Tom [R-OK-4]* 
  • Rep Collins, Chris [R-NY-27]* 
  • Rep Cramer, Kevin [R-ND]
  • Rep Davis, Rodney [R-IL-13]* 
  • Rep Duffy, Sean P. [R-WI-7]
  • Rep Flores, Bill [R-TX-17]* 
  • Rep Franks, Trent [R-AZ-8]* 
  • Rep Garrett, Scott [R-NJ-5]
  • Rep Gohmert, Louie [R-TX-1]* 
  • Rep Gosar, Paul A. [R-AZ-4]* 
  • Rep Gowdy, Trey [R-SC-4]
  • Rep Harper, Gregg [R-MS-3]* 
  • Rep Harris, Andy [R-MD-1]* 
  • Rep Hartzler, Vicky [R-MO-4]* 
  • Rep Hudson, Richard [R-NC-8]* 
  • Rep Huelskamp, Tim [R-KS-1]* 
  • Rep King, Steve [R-IA-4]
  • Rep LaMalfa, Doug [R-CA-1]* 
  • Rep Latta, Robert E. [R-OH-5]
  • Rep Love, Mia B. [R-UT-4]
  • Rep Lummis, Cynthia M. [R-WY]* 
  • Rep McClintock, Tom [R-CA-4]
  • Rep Meadows, Mark [R-NC-11]
  • Rep Messer, Luke [R-IN-6]* 
  • Rep Mulvaney, Mick [R-SC-5] 
  • Rep Noem, Kristi L. [R-SD]
  • Rep Palmer, Gary J. [R-AL-6]
  • Rep Shimkus, John [R-IL-15]
  • Rep Tiberi, Patrick J. [R-OH-12]* 
  • Rep Turner, Michael R. [R-OH-10]
  • Rep Valadao, David G. [R-CA-21]
  • Rep Weber, Randy K., Sr. [R-TX-14]* 
  • Rep Wenstrup, Brad R. [R-OH-2]
  • Rep Westerman, Bruce [R-AR-4]
  • Rep Williams, Roger [R-TX-25]
  • Rep Yoho, Ted S. [R-FL-3]*