Lawmakers in Congress introduced the Death Tax Repeal Act to permanently repeal the federal estate tax—known as the “death tax”— and generation-skipping transfer taxes.
The bill is led by Sen. Kevin Cramer (R-ND) and Senate Majority Leader John Thune (R-SD) in the Senate and Reps. Randy Feenstra (R-IA-04) and Sanford Bishop (D-GA-02) in the House.
The bill would also reduce the federal gift tax from 40% to 35% and retain the full step-up in basis. The Tax Cuts and Jobs Act implemented tax cuts in 2017, but the cuts are set to expire at the end of 2025.
“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,” Thune said.
National Cattlemen’s Beef Association President Buck Wehrbein said of the death tax: “This is not a tax on the rich, it is a boot on the neck of family businesses.”
