Death Tax Repeal Act of 2025
Sponsored By: Senator John Thune
Introduced
Summary
Repeal of the estate and generation-skipping transfer taxes. This bill would eliminate those transfer taxes for decedents dying and GST transfers occurring after enactment and would overhaul the gift tax to raise the lifetime exemption and add a new tiered rate schedule.
Show full summary
- Families and heirs: Heirs of people who die after enactment would no longer face the federal estate tax or the generation-skipping transfer tax.
- Donors and trusts: The lifetime gift exemption would rise to $10 million, indexed for inflation, and gift tax rates would be rewritten into brackets that range from 18% up to 35% for the largest gifts. Trust transfers would be treated as taxable gifts unless the trust is wholly owned by the donor or the donor's spouse.
- Implementation and timing: The changes would apply to gifts made and transfers occurring on or after enactment and include a transition rule that treats the calendar year of enactment as two separate periods for certain tax provisions.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
Estate tax repeal for decedents
If enacted, the bill would end the federal estate tax for people who die on or after the date of enactment. Executors, heirs, and beneficiaries of those estates would generally no longer owe the federal estate tax. There are limited exceptions for some Qualified Domestic Trust distributions described in the bill.
Repeal of generation-skipping tax
If enacted, the bill would end the generation-skipping transfer (GST) tax for transfers on or after the date of enactment. Trusts and donors who make transfers to skip a generation, like gifts to grandchildren, would no longer face the GST tax on those transfers after enactment.
Major gift tax overhaul for donors
If enacted, the bill would rewrite how the gift tax is computed each year. The tax would equal a "tentative tax" on total taxable gifts minus a tentative tax on prior gifts, using a new bracket schedule starting at 18% up to $10,000 and rising to 35% on amounts over $500,000. It would set the lifetime gift exclusion reference based on $10,000,000 and then increase that amount for inflation each year, rounded to the nearest $10,000. Putting assets into many trusts would count as a taxable gift unless the trust is treated as wholly owned by you or your spouse. These rules would apply to gifts made on or after the date of enactment. The bill would also treat the calendar year of enactment as two separate years for certain gift and basis rules.
Sponsors & CoSponsors
Sponsor
John Thune
SD • R
Cosponsors
Chuck Grassley
IA • R
Sponsored 2/13/2025
James Lankford
OK • R
Sponsored 2/13/2025
Cindy Hyde-Smith
MS • R
Sponsored 2/13/2025
Bill Hagerty
TN • R
Sponsored 2/13/2025
Steve Daines
MT • R
Sponsored 2/13/2025
Tommy Tuberville
AL • R
Sponsored 2/13/2025
Tim Sheehy
MT • R
Sponsored 2/13/2025
Ron Johnson
WI • R
Sponsored 2/13/2025
Markwayne Mullin
OK • R
Sponsored 2/13/2025
Shelley Capito
WV • R
Sponsored 2/13/2025
James Justice
WV • R
Sponsored 2/13/2025
John Cornyn
TX • R
Sponsored 2/13/2025
Roger Wicker
MS • R
Sponsored 2/13/2025
Tim Scott
SC • R
Sponsored 2/13/2025
Marsha Blackburn
TN • R
Sponsored 2/13/2025
Thomas Tillis
NC • R
Sponsored 2/13/2025
Ted Budd
NC • R
Sponsored 2/13/2025
Mike Crapo
ID • R
Sponsored 2/13/2025
John Hoeven
ND • R
Sponsored 2/13/2025
John Barrasso
WY • R
Sponsored 2/13/2025
James Risch
ID • R
Sponsored 2/13/2025
John Boozman
AR • R
Sponsored 2/13/2025
Joni Ernst
IA • R
Sponsored 2/13/2025
Jerry Moran
KS • R
Sponsored 2/13/2025
Roger Marshall
KS • R
Sponsored 2/13/2025
Kevin Cramer
ND • R
Sponsored 2/13/2025
Pete Ricketts
NE • R
Sponsored 2/13/2025
Rick Scott
FL • R
Sponsored 2/13/2025
John Kennedy
LA • R
Sponsored 2/13/2025
Mike Rounds
SD • R
Sponsored 2/13/2025
Cynthia Lummis
WY • R
Sponsored 2/13/2025
Deb Fischer
NE • R
Sponsored 2/13/2025
Lindsey Graham
SC • R
Sponsored 2/13/2025
David McCormick
PA • R
Sponsored 2/13/2025
Katie Britt
AL • R
Sponsored 2/13/2025
Todd Young
IN • R
Sponsored 2/13/2025
Tom Cotton
AR • R
Sponsored 2/13/2025
Sen. McConnell, Mitch [R-KY]
KY • R
Sponsored 2/13/2025
Jim Banks
IN • R
Sponsored 2/13/2025
John Curtis
UT • R
Sponsored 2/13/2025
Eric Schmitt
MO • R
Sponsored 2/13/2025
Mike Lee
UT • R
Sponsored 2/13/2025
Josh Hawley
MO • R
Sponsored 2/13/2025
Ted Cruz
TX • R
Sponsored 2/13/2025
Bernie Moreno
OH • R
Sponsored 2/13/2025
Jon Husted
OH • R
Sponsored 4/28/2025
Roll Call Votes
No roll call votes available for this bill.
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