The core principle of the American republic is that it functions at the will of, and with the consent of, the people of the United States. This is outlined in the preamble of our Constitution. It’s a deeply American principle that the rest of the world has admired since our nation’s birth.

In the 119th Congress, the people are making their voices heard. My legislation — the Death Tax Repeal Act — to permanently eliminate the death tax on our family farms and small businesses has been cosponsored by 176 of my House colleagues and received vocal support from many Iowans just the other week on my fifth biannual 36 County Tour. Farmers, families, manufacturers, and small business owners of all sizes agree that this tax is unjust and must be repealed.

Serving on both the House Agriculture Committee and House Committee on Ways and Means, I am in a unique position to advocate for the interests of Iowans. On my 36 County Tour, I have repeatedly heard from Iowans about their concerns for future generations of Iowa’s farms and businesses. According to the U.S. Small Business Administration (SBA), 27.3 percent of all U.S. firms are family-owned. Many of these businesses have fewer than 10 employees on the payroll. Despite the small size of most family-owned businesses, they account for nearly 80 percent of all new job creation. Likewise, family-owned farms account for the majority of operations in the nation. As reported by the U.S. Department of Agriculture, approximately 97 percent of operations in the United States are family-owned.

Multi-generational, family-owned agricultural operations and small businesses are part of what makes America the best place to live, work, and raise a family. If we want the American Dream to continue to power our nation, we need to set up the next generation for success. As it stands, when a family-owned restaurant, farm, or other small businesses, is passed down to the next generation, the federal government has decided that it is entitled to a chunk of that operation’s value. It’s absurd and a slap in the face to Iowans who have worked hard and made incredible sacrifices to run successful farms and businesses.

This tax on asset transfer can cause an immense amount of stress on families already grieving the loss of a loved one. For farming operations, the tax bill they receive includes assets like equipment and land included in the value of the operation. These are not readily liquid assets and can send the tax bill sky high. In 2023, the average size of an Iowa farm was 359 acres, and with an average cost of $11,467 per acre, the average farmer is sitting on $4 million in land alone. This figure, which is just the average, does not even include the value of farm equipment, business assets, and other infrastructure critical to farm and business operations. As a result, our family farms and small businesses face enormous tax bills as condolences from the federal government, instead of the tax relief that they need and deserve.

The same problem afflicts business owners. A small business that operates with $3 million in assets and generates just a 5 percent return on those assets, $150,000 per year, could be left with a tax bill of nearly $900,000. Small businesses operating on less profitable margins could leave an heir with an even larger tax bill. This government greed stifles the American Dream right off the bat and strips the next generation of the chance to contribute to their family’s legacy.

If my legislation were to become federal law, it would not only allow families to continue building on their legacy, but, through reinvestment, it would actually increase tax revenue for state and local governments by $9.3 billion and the federal tax revenue by $23.3 billion. As many family businesses are well aware, often the greatest motivation is building a legacy and livelihood that can be passed down to children and grandchildren. This reinvestment is not only a great source of pride but also leads to economic growth for our rural communities and the entire nation.

In 2017, we took a big step forward when the Tax Cuts and Jobs Act doubled the asset exemption threshold for when the death tax takes effect. While this served as a temporary solution, the main issue remains. The death tax is an unfair and egregious double tax that unfairly targets American family farms and small businesses and directly threatens long-held farming traditions in rural Iowa and across the country. With Senate Majority Leader John Thune introducing the Death Tax Repeal Act in the Senate and along with overwhelming support from over 200 organizations — ranging from the Family Business Coalition, the American Farm Bureau, the National Federation of Independent Business, and many more — we are marching towards the permanent and full repeal of the unjust death tax.

U.S. Rep. Randy Feenstra, R-Hull, represents Iowa’s 4th Congressional District.