Over 200 Republican lawmakers are advocating for the repeal of the federal estate tax, commonly known as the “death tax.” Leading this initiative, Rep. Randy Feenstra of Iowa has introduced the “Death Tax Repeal Act,” supported by more than 170 House Republicans, including House Ways & Means Chairman Jason Smith. In the Senate, Majority Leader John Thune of South Dakota is spearheading a companion bill with backing from 44 senators.
The estate tax currently applies to estates valued at approximately $13.9 million or more at the time of death. Critics argue that this tax imposes an undue financial burden on grieving families, particularly affecting small, family-owned businesses and farms. Rep. Feenstra emphasized, “It is ridiculous that the federal government sends grieving families a massive tax bill when a loved one passes away.”
Proponents of the estate tax contend that it affects a relatively small number of wealthy estates and serves as a source of federal revenue. However, opponents highlight that the tax can force the sale of family-owned enterprises to cover the liability, disrupting generational business continuity.
Sen. Thune stated, ” It’s time to put an end to this punishing, burdensome tax once and for all so that family farms, ranches and small businesses can grow and thrive without costly estate planning or massive tax burdens that can threaten their viability.”
This legislative effort coincides with Republican endeavors to extend provisions of the 2017 Tax Cuts and Jobs Act, which are set to expire at the end of this year. Among these is the doubling of the estate tax exemption, scheduled to sunset in 2026. If not extended, the exemption threshold would revert to approximately $7 million, potentially subjecting more estates to the tax.
The push to repeal the estate tax reflects a broader commitment to reducing tax burdens and supporting family-owned businesses. As the debate continues, lawmakers must balance federal revenue considerations with the desire to protect families from what many view as an unfair tax during times of loss.
