The 2017 Tax Cuts and Jobs Act did temporarily double the estate tax exemption to $11 million per person indexed for inflation through 2025, which puts the exemption per person at $11.7 million for 2021. Without further congressional action, the estate tax exemption will revert to $5.5 million per person in 2026.
The bill is supported by the American Farm Bureau Federation, the National Cattlemen’s Beef Association, the National Federation of Independent Business, the National Association of Manufacturers, the Family Business Coalition, the Family Business Estate Tax Coalition, the Policy and Taxation Group, the Associated General Contractors of America, the National Taxpayers Union and others.
IRS data on estate taxes from 2019, the most recent year available, show 2,570 estates paid the estate tax with gross estate assets of $77.3 billion. The bulk of assets taxed in estates — $43.16 billion in 2019 – were stocks, bonds and cash. The IRS shows 269 estates nationally that paid the tax in 2019 listed farm assets totaling $1.33 billion. Another 595 estates that paid the tax in 2019 also reported $1.14 billion in art assets.
In addition to Hoeven, Thune, McConnell and Crapo, the Death Tax Repeal Act of 2021 is co-sponsored by Republican Sens. Kevin Cramer of North Dakota, John Barrasso of Wyoming, Marsha Blackburn of Tennessee, Roy Blunt of Missouri, John Boozman of Arkansas, John Cornyn of Texas, Tom Cotton of Arkansas, Ted Cruz of Texas, Steve Daines of Montana, Joni Ernst of Iowa, Deb Fischer of Nebraska, Chuck Grassley of Iowa, James Inhofe of Oklahoma, John Kennedy of Louisiana, Roger Marshall and Jerry Moran of Kansas, Jim Risch of Idaho, Mike Rounds of South Dakota, Marco Rubio and Rick Scott of Florida, Richard Shelby of Alabama and Roger Wicker of Mississippi.
Jerry Hagstrom can be reached at email@example.com
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