Sen. John Thune (R-SD), the Senate’s Majority Leader and a member of the tax-writing Senate Finance Committee, is pushing for inclusion of complete estate tax repeal in the upcoming tax reconciliation bill. Sen. Thune listed estate tax repeal as among his priorities—another is making permanent the extension of expiring tax rules.
“I continue to advocate for eliminating the death tax once and for all, so no farmer or rancher has to worry about whether the family farm or ranch will be able to stay in the family after they pass,” Sen. Thune said in the Senate speech on March 26.
Prospects: Complete repeal of the estate tax, formally supported by 46 of the Senate’s 53 Republicans, is one of many competing proposals in the mix as the Senate Finance Committee and the House Ways & Means Committee work on constructing what could be a $4+ trillion tax package to include in the reconciliation bill authorized by the Congressional Budget Resolution (CBR). House Ways & Means Committee Chairman Rep. Jason Smith (R-MO) also supports complete estate tax repeal. Estate tax repeal has for years been a priority for the GOP in general.
However, complete estate tax repeal is expected to cost around $300 billion, so it likely will be a challenge finding room for that big a provision when there are so many other big-ticket Trump and GOP priorities (e.g., permanent extension of the expiring tax rules; tax-free tip, Social Security, and overtime income; last year’s business tax package (research & development, depreciation, business interest deductibility); tax-deductible auto loan interest; lower taxes for companies producing American-made products; and more). Many Washington insiders believe that ultimately the only estate tax rule that will be in the reconciliation bill tax package will be an extension (perhaps made permanent) of the current law $13.99 (indexed) million personal exemption.
NAIFA Staff Contact: Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org.