More Than 200 GOP Lawmakers Push To Eliminate Inheritance Tax
Rep. Randy Feenstra, an Iowa Republican, is leading more than 170 House Republicans who have signed on his legislation. the “Death Tax Repeal Act,” which was introduced yesterday, Fox News reported. Senate Majority Leader John Thune, a South Dakota Republican, introduced the bill in the Senate with 44 co-signors.The legislation would “permanently eliminate the death tax on American family farms and businesses,” Feenstra said on X.
“This unfair double tax serves no other purpose than extracting more money from hardworking families,” the lawmaker added.
The measure is backed by Ways and Means Committee Chairman Jason Smith, the chief author of tax legislation in the House.
“As a fourth-generation farm owner, who manages the same land my grandparents and great-grandparents did, I understand this fear plaguing family-owned businesses across the country,” he said in a statement. “If the Trump tax cuts expire, two million family farms will see their Death Tax exemption slashed in half. Congress needs to take immediate action to permanently extend these tax cuts so America’s family farmers do not have to spend their time dialing up estate planners to help navigate the uncertainty.”
The beneficiaries who inherit assets when a person dies are the people who pay the inheritance or estate tax. Currently, the federal estate tax ranges from 18% to 40% for estates exceeding $13.61 million, according to the IRS.
In 2017, the estate tax exemption was $5.49 million per individual. The Tax Cuts and Jobs Act (TCJA) doubled the exemption to $11.4 million for single filers and $22.8 million for married couples in 2018, adjusted annually for inflation.
Republican lawmakers are pushing to include the death tax elimination legislation in the package they’re preparing to extend President Donald Trump’s 2017 Tax Cuts and Jobs Act, which are set to expire at the end of this year. Along with all of the other tax cuts, the provision’s estate tax exemption is sunsetting in 2026. Without intervention, the tax will double.
House Majority Leader Steve Scalise told reporters that lawmakers met with Trump for more than four hours yesterday and that Trump was “very engaged thoughout the meeting. We are narrowing down the differences.”
“We are knocking down the door of a successful deal,” Rep. Jodey Arrington, who represents Texas, said as he left the White House meeting.
GOP lawmakers have been opponents of the estate tax, which they said can make it nearly impossible for grieving family members to hold on to highly appreciated family businesses and farms.
“About 95% of small businesses, farms, and ranches in our country are owned by individuals and families, and our legislation would enable these multigenerational businesses to continue to support their families without having to pay a devastating tax on the death of a family member,” Feenstra said.
For more information see Tracey Longo “More Than 200 GOP Lawmakers Push To Eliminate Inheritance Tax” Financial Advisor, February 14, 2025.
Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.