Republican Push for Death Tax Repeal Act: Impact on Families and Small Businesses

Red Republican elephant sign on U.S. flag.

Republicans intensify efforts to repeal the “death tax,” aiming to protect family businesses and farms from inheritance burdens.

Quick Takes

Over 170 House Republicans support the “Death Tax Repeal Act” to eliminate the federal estate tax.
The current estate tax affects estates worth $13.9 million or more, but could apply to $7 million estates if 2017 tax cuts expire.
GOP lawmakers argue the tax unfairly burdens grieving families and threatens family-owned businesses and farms.
A companion bill in the Senate, led by John Thune, has support from 44 senators.
Critics note the tax only applies to high-value estates, while supporters claim it’s a form of double taxation.

Republican Push to Eliminate the “Death Tax”

Republican lawmakers are ramping up their efforts to repeal the federal estate tax, commonly known as the “death tax.” Representative Randy Feenstra of Iowa is spearheading the “Death Tax Repeal Act” in the House, with backing from over 170 Republican colleagues, including Ways & Means Chairman Jason Smith. This initiative aims to abolish a tax that Republicans argue unfairly targets American families during times of loss.

The estate tax currently affects estates valued at approximately $13.9 million or more. However, if the tax cuts established by the 2017 Tax Cuts and Jobs Act are not extended, this threshold could drop to around $7 million by 2026, potentially impacting a broader range of Americans.

🚨@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

Impact on Family Businesses and Farms

Proponents of the repeal, including Rep. Feenstra and Senator John Thune, argue that the estate tax disproportionately affects family-owned farms and small businesses. They contend that the tax can force grieving families to sell significant portions of their inheritances simply to cover the tax bill, potentially dismantling generations of hard work and tradition.

“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.” – Feenstra

In the Senate, a parallel bill led by Majority Leader John Thune has garnered support from 44 senators. This bipartisan effort underscores the Republican Party’s commitment to what they see as protecting American families’ legacies and economic interests.

The GOP bill to repeal the estate tax would give:

$1.8 trillion to billionaires
$98 billion to Elon Musk's family
$66 billion to the Bezos family
$47 billion to the Zuckerberg family
$0 to 99.9% of US families

And they want you to know how concerned they are about the deficit. https://t.co/tOQd5am0XI

— Warren Gunnels (@GunnelsWarren) December 4, 2023

Broader Tax Reform Context

The push to repeal the estate tax is part of a larger Republican strategy to extend and expand upon the tax reforms established in the 2017 Tax Cuts and Jobs Act. House Ways & Means Committee Republicans have warned that if these tax cuts are allowed to expire, American households could face tax increases of over 20%.

“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.” – Senator Thune

The Death Tax Repeal Act, if passed, would not only eliminate the Estate Tax but also the Generation-Skipping Transfer Tax (GSTT). Importantly, the bill proposes to maintain the step-up basis, which adjusts the value of inherited assets for tax purposes.

Looking Ahead

As the debate over the estate tax continues, Republicans are framing this as a fight for American families and small businesses. They argue that repealing the tax would remove a significant barrier to preserving family legacies and fostering economic growth. However, with the current political landscape, the path to repeal remains uncertain, and the issue is likely to be a point of contention in upcoming legislative sessions and electoral campaigns.