Inheritance tax hits chopping block as more than 200 Republicans push for repeal

FIRST ON FOX: Republican lawmakers are mounting a monolithic effort to repeal the national inheritance tax, colloquially known arsenic the "death tax."

Rep. Randy Feenstra, R-Iowa, is starring much than 170 House Republicans connected the "Death Tax Repeal Act," which is besides backed by the House’s apical taxation writer, Ways & Means Chairman Jason Smith, R-Mo.

An inheritance oregon property taxation is levied upon the beneficiary who receives assets upon a person's death. Republicans person agelong criticized the property taxation arsenic a needless fiscal load connected grieving families, peculiarly hitting tiny family-owned businesses.

It comes arsenic Republicans work connected extending President Donald Trump’s 2017 Tax Cuts and Jobs Act, whose provisions expire astatine the extremity of this year. Among the measures sunsetting successful 2026 is simply a doubling of the property taxation exemption.

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Supporters of the national property taxation constituent retired that it affects a comparatively tiny fig of estates. Penalties are triggered for estates worthy astir $13.9 cardinal astatine the clip of death, according to the latest IRS data.

A counterpart measure successful the Senate is being led by Majority Leader John Thune, R-S.D., and is backed by 44 senators. 

Both Feenstra and Thune argued it was an unnecessary taxation that unfairly affected household farms and tiny businesses successful their location states of Iowa, South Dakota and elsewhere.

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"The decease taxation is an egregious treble taxation that unfairly targets American household farms and tiny businesses and straight threatens long-held farming traditions successful agrarian Iowa and crossed the country," Feenstra told Fox News Digital. "It is ridiculous that the national authorities sends grieving families a monolithic taxation measure erstwhile a loved 1 passes away."

He said it amounted to "double taxation."

"Family farms and ranches play a captious relation successful our system and are the lifeblood of agrarian communities successful South Dakota," Thune told Fox News Digital.

"Losing adjacent 1 of them to the decease taxation is 1 excessively many. It’s clip to enactment an extremity to this punishing, burdensome taxation erstwhile and for each truthful that household farms, ranches and tiny businesses tin turn and thrive without costly property readying oregon monolithic taxation burdens that tin endanger their viability."

If Republicans neglect to widen Trump’s taxation cuts earlier the extremity of this year, the property taxation would impact immoderate estates worthy astir $7 cardinal oregon more, according to Modern Wealth Law.

House Ways & Means Committee Republicans shared a memo precocious past twelvemonth that said mundane American households could spot taxes emergence by implicit 20% if the taxation cuts expired.

Feenstra and Thune’s measure would abolish the taxation altogether, however.