Davidson Praises Halt of Death Tax Increase, Calls for Full Repeal in Tax Reform Bill
Washington, DC - Today, Rep. Warren Davidson is praising actions of President Trump’s Treasury Department for announcing it will formally withdraw regulations that would have increased the death tax by as much as 30 percent. In praising today’s actions, Davidson is now calling for Congress to fully repeal the death tax.
“After fighting this battle for over a year, I’m glad to finally see that hardworking American families will not be at the mercy of another government revenue grab,” said Davidson. “While I’m glad this specific stealth tax threat is over, there is a broader fight ahead as I hope Congress fully repeals the death tax in upcoming tax reform legislation.”
Congressman Davidson's language was included in Rep. Tom Graves' (GA-14) appropriations bill which stopped the death tax increase. Additionally, during the last Congress, Senator Marco Rubio (R-FL) and Davidson both introduced similar legislation that garnered 92 cosponsors in the House and 5 in the Senate. Numerous free market and business groups supported this bill.
Background of death tax increase timeline:
• August 4, 2016 – President Obama’s Treasury Department issues new regulation under Section 2704 which gut business valuations and replace with government valuations for family-owned and operated businesses. This rule was specifically crafted to increase tax and changed the way the death tax is calculated.
• September 21, 2016 – Rep. Davidson introduces legislation to block the new rule under Section 2704.
• January 5, 2017 – Senator Marco Rubio (FL) and Rep. Davidson reintroduce legislation to stop IRS death tax overreach.
• September 14, 2017 – House passed appropriations bill which included language by Rep. Davidson preventing the proposed death tax changes.
• October 4, 2017 – President Trump's Treasury Department announces formal withdraw of death tax regulations.
From Treasury: “In the report released today, Treasury plans to withdraw proposed regulations under Section 2704 that would have hurt family-owned and operated businesses by limiting valuation discounts. The regulations would have made it difficult and costly for a family to transfer their businesses to the next generation. Commenters warned that the valuation requirements of the proposed of the proposed regulations were unclear and could not be meaningfully applied.” U.S. Department of Treasury Press Release (October 4, 2017) https://www.treasury.gov/press-center/press-releases/Pages/sm0172.aspx
Rep. Davidson Introduces Legislation to Stop the IRS’s Unilateral Death Tax Increase; Davidson Press Release (September 21, 2016) https://davidson.house.gov/media-center/press-releases/rep-davidson-introduces-legislation-stop-irs-s-unilateral-death-tax
Clinton’s 65 percent Killer Death Tax; Rep. Warren Davidson (R, OH) on Hillary Clinton’s proposal to raise death tax to 65% from 40%; Wall Street Journal Editorial (September 23, 2016) https://www.wsj.com/articles/clintons-65-killer-death-tax-1474586639
Rubio, Davidson Respond to Outpouring of Comments Opposing IRS Death Tax Rules; Rubio Press Release (November 4, 2016) https://www.rubio.senate.gov/public/index.cfm/press-releases?ID=9913425E-1B07-49A3-84F6-4801BFC462F4
Rubio, Davidson Reintroduce Legislation to Stop IRS Death Tax Overreach; Rubio Press Release (January 5, 2017) https://www.rubio.senate.gov/public/index.cfm/press-releases?ID=0797F2BE-D83F-4D70-8783-A2A3F33BC49B
Zombie Obama Regulations Keep the Death Tax Kicking, Among Other Maladies; Forbes (June 22, 2017) https://www.forbes.com/sites/ryanellis/2017/06/22/zombie-obama-regulations-keep-the-death-tax-kicking-among-other-maladies/#1e3aec8359ce
Davidson Stops Death Tax Increase in Appropriations Bill; Davidson Press Release (September 14, 2017) https://davidson.house.gov/media-center/press-releases/davidson-stops-death-tax-increase-appropriations-bill