Senate Republicans Reintroduce Bill to Repeal the Estate Tax

This past Monday, the Senate Republicans reiterated their tax priorities with introducing – again – a bill to completely repeal the estate tax. The 2017 Tax Cuts and Jobs Act significantly decreased the amount of estates that the tax would be applicable to by doubling the exemption amount, but Republicans want to take the issue even further.

The legislation was presented by Senator John Thune of South Dakota, who has reportedly introduced repealing the estate tax numerous times. Senate Republicans argued that repealing the estate tax, which they often call the “death tax,” would be beneficial to owners of small businesses and family farms. The bill is unlikely to pass, however, because of the Democratic party controlling the House.

“Oftentimes, family-owned farms and ranches bear the brunt of this tax, which threatens families’ agricultural legacies and makes it difficult and costly to pass these businesses down to future generations,” Thune said. The Urban-Brookings Tax Policy Center estimated that only about 80 small farms and small closely-held businesses paid the estate tax in 2017, and likely none of those farm will be liable for the tax in 2018 due to the newest tax-law changes.

See Naomi Jagoda, Senate Republicans Reintroduce Bill to Repeal the Estate Tax, The Hill, January 28, 2019.

Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.