Death tax repeal effort gets more than 200 Republican lawmakers on board

In a groundbreaking move, Republican lawmakers are spearheading a massive effort to repeal the federal inheritance tax, commonly referred to as the “death tax.” This initiative, known as the “Death Tax Repeal Act,” is being championed by Rep. Randy Feenstra of Iowa, with the support of over 170 House Republicans, including Ways & Means Chairman Jason Smith of Missouri.

The inheritance or estate tax is a levy imposed on beneficiaries who receive assets upon the death of an individual. Critics, particularly Republicans, have long lambasted the estate tax as an unnecessary financial burden on grieving families, especially impacting small family-owned businesses.

This push to repeal the estate tax comes as Republicans strive to extend the provisions of President Donald Trump’s 2017 Tax Cuts and Jobs Act, which are set to expire at the end of this year. Among the measures scheduled to sunset in 2026 is the doubling of the estate tax exemption.

Supporters of the federal estate tax argue that it affects a relatively small number of estates, with penalties triggered for estates valued at approximately $13.9 million at the time of death, according to the latest IRS data. However, Rep. Feenstra and Senate Majority Leader John Thune of South Dakota contend that it is an unjust tax that disproportionately impacts family farms and small businesses in their respective states and beyond.

Feenstra emphasized that the death tax represents a form of double taxation, imposing a hefty financial burden on grieving families. Thune echoed these sentiments, highlighting the importance of protecting family farms and small businesses from the detrimental effects of this tax.

If Republicans fail to extend President Trump’s tax cuts before the year’s end, estates worth around $7 million or more would be subject to the estate tax, as per Modern Wealth Law. A memo from House Ways & Means Committee Republicans warned that everyday American households could face tax increases of over 20% if the tax cuts expire. However, Feenstra and Thune’s bill aims to completely abolish the estate tax, providing relief to family farms, ranches, and small businesses.

This move has sparked significant debate and discussion within political circles, underscoring the importance of tax reform and economic policies in shaping the future of the country. As lawmakers continue to navigate these complex issues, the fate of the federal inheritance tax remains uncertain.