Republican Push for Death Tax Repeal Act: Impacts on Inheritance Tax

(DailyChive.com) – Republicans in Congress are leading a charge to repeal the federal estate tax, commonly known as the “death tax,” citing its impact on family businesses and farms.

At a Glance

Over 170 House Republicans support the “Death Tax Repeal Act”
The current estate tax affects estates worth $13.9 million or more
Republicans argue the tax unfairly burdens grieving families and small businesses
The bill aims to abolish the estate tax entirely
A similar bill in the Senate has support from 44 senators

Republican Push for Estate Tax Repeal

Republican lawmakers are spearheading efforts to repeal the federal inheritance tax, known as the “death tax.” Representative Randy Feenstra of Iowa is leading the charge in the House with the “Death Tax Repeal Act,” garnering support from over 170 House Republicans, including Ways & Means Chairman Jason Smith of Missouri.

The estate tax currently affects estates worth approximately $13.9 million or more. However, Republicans argue that this tax unfairly burdens grieving families, particularly those with small family-owned businesses and farms. The proposed legislation aims to abolish the estate tax entirely, providing relief to those who might otherwise face significant tax burdens upon inheriting family assets.

🚨@LeaderJohnThune and I just introduced our Death Tax Repeal Act with more than 200 of our colleagues!

The death tax is an egregious double tax that unfairly targets American family farms and small businesses.

We must #AxeTheDeathTax for good!https://t.co/XEmTHY1zDa

— Rep. Randy Feenstra (@RepFeenstra) February 13, 2025

Senators Join the Fight

The push for repeal isn’t limited to the House. In the Senate, Majority Leader John Thune of South Dakota is leading a similar effort, with support from 44 senators. Senators Tom Cotton and John Boozman of Arkansas have also reintroduced legislation to repeal the federal estate tax.

“The death tax is an 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. It is ridiculous that the federal government sends grieving families a massive tax bill when a loved one passes away.”

The senators argue that the tax forces families to sell parts of their businesses or farms, which they deem unfair and harmful to the economy. They emphasize the importance of preserving family legacies and supporting rural communities.

Potential Impact and Opposition

If the current tax cuts are not extended, the estate tax would apply to estates worth around $7 million or more, potentially affecting a larger number of Americans. House Ways & Means Committee Republicans have warned that taxes could rise by over 20% for American households if the tax cuts expire.

“Family farms and ranches play a vital role in our economy and are the lifeblood of rural communities in South Dakota. Losing even one of them to the death tax is one too many. 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.”

However, critics of the repeal effort point out that the estate tax currently affects only a small minority of estates, those exceeding the $13.9 million threshold. They argue that the tax serves as an important mechanism for preventing the concentration of wealth and ensuring that the wealthiest Americans contribute their fair share to public coffers.

Looking Ahead

As the debate continues, the outcome of this legislative push remains uncertain. Republicans are positioning the repeal as a way to protect family businesses and farms, while also seeking to extend measures from the 2017 Tax Cuts and Jobs Act. The success of these efforts will likely depend on broader political negotiations and the ability to garner bipartisan support in a divided Congress.

For now, Americans with significant estates will need to stay informed about potential changes to the tax code and consider how they might impact their long-term financial and estate planning strategies.