Senate Republican Leader John Thune said President Donald Trump's giant fiscal bill is unlikely to repeal the estate tax.
"I'd love to get rid of it," Thune told reporters Wednesday, adding that senators had considered repealing the tax. "I don't think it's probably likely to happen here."
Thune has been a vocal critic of the 40% estate tax paid by the wealthiest U.S. individuals when they die. The South Dakota Republican has assailed the levy, which he says harms family-owned businesses and farms.
Thune told reporters he anticipates the Senate version of the bill will mirror the House's plan. The legislation permanently increases the estate tax exemption to $15 million for individuals and $30 million for married couples, with future increases tied to inflation.
Thune's remarks are a concession that Republicans are constrained by budgetary rules that limit the overall size of the bill. The legislation calls for a renewal of Trump's 2017 tax cuts and includes the president's campaign promises for no taxes on tips and overtime pay.
The fiscal limitations mean that Republicans are unlikely to pass all their tax priorities, despite controlling Congress and the White House.
The estate tax affects only a small segment of taxpayers, but has gained political significance with Republicans branding it a "death tax" and saying it inhibits farmers and other small business owners from passing on their assets to their children. In 2022, 3,170 estates — less than 0.1% of Americans — paid estate tax at death, according to Internal Revenue Service data.
Current estate tax rules mean that an individual's estate can pass up to $13.99 million tax-free on to their heirs, or twice that for a couple. The top tax rate is 40% on assets, though many billionaires and other wealthy people have long exploited legal loopholes to avoid paying it.
